Income Tax Expense Research Articles

Earnings Management Trend in Manufacturing Companies Sub-Sector Food and Beverage Listed on the Indonesia Stock Exchange Year 2019-2023

This study aims to analyze the trend of earnings management in manufacturing companies operating in the food and beverage sub-sector listed on the Indonesia Stock Exchange. Earnings management trends encompass methods used by companies to manipulate or manage their financial statements. Factors influencing earnings management include tax planning, income tax expenses, and profitability. The management's goal is to enhance corporate earnings to reflect stable profits, thus accurately portraying the company's financial performance in future periods. The study population consists of 45 companies, with a sample of 9 companies selected using purposive sampling. Data collection utilized secondary data from quarterly financial reports of manufacturing companies listed on the Indonesia Stock Exchange from 2019 to 2023. The research employed descriptive analysis to assess earnings management trends as predictors of profit increases. The findings reveal significant fluctuations in earnings management practices among food and beverage manufacturing companies listed on the Indonesia Stock Exchange during the period from 2019 to 2023.

The Effect Of Revenue And Income Tax Expense On Net Profit

This research aims to determine and analyze the influence of revenue and income tax expense on net profit at PT. Midi Utama Indonesia Tbk which operates in the retail business in Indonesia, both partially and simultaneously. The population in this research is the quarterly financial reports of PT. Midi Utama Indonesia Tbk 2014-2023. The research sample includes data regarding revenue, income tax expense and net profit. The data analysis technique for this research uses the SPSS version 27 program. Based on the research results, it can be concluded that revenue partially influences net profit with a significance value of 0.000 0.05, Income Tax Expense partially influences net profit with a significance value of 0.000 0, 05, revenue and income tax expenses simultaneously influence net profit with a significance value of 0.000 0.05.

CHOICE OF THE FORM OF TAXATION OF A MICRO-ENTERPRISE AS AN INSTRUMENT OF TAX OPTIMILISATION IN THE LIGHT OF THE CHANGES IN THE POLISH DEAL

The purpose of this article is an evaluation of the impact of changes in regulations concerning income tax assessment and premiums for medical insurance from economic activity of microenterprises as part of the so-called „Polish Deal” on the value of regulatory liabilities arising from income tax and health contribution in context of various forms of taxations. Ambiguity and changeability of the regulations as well as an increase in regulatory liabilities is not helpful to entrepreneurs in business development and constitutes obstacles, hindering the advancement of the microenterprise sector. Choosing the taxation form of conducted business is very significant for the amount of income tax expense of microenterprise. Amendments to tax regulations due to the 2022 introduction of the „Polish Deal” caused a revolution in forms of accounting for income tax and regulations defining the value of premiums for medical insurance in microenterprise groups. It results from the conducted research that implementing regulations of the „Polish Deal” caused the increase of the regulatory liabilities for microenterprises which in turn in some cases result in a drop in profitability of conducted activity that can hinder entrepreneurship and lead to abandonment of conducting economic activity.

Corporate Overheads and Operational Performance of Brewing Firms in Nigeria

The study examined the effect of corporate overheard on the operational performance of firms in the Brewing Industry in Nigeria. The specific objectives of the study were to ascertain the effect of sales and marketing expenses, administrative expenses, and company income tax expenses on earnings per share of breweries in Nigeria. The study adopted an ex-post-facto research design, covering the period between 2015 and 2022. Secondary data were extracted from the annual reports and accounts of sampled breweries in Nigeria. Multiple regression techniques were used for test of hypotheses. The findings of the study indicate that sales and marketing expenses, administrative expenses, and company income tax expenses do not have a statistically significant effect on the earnings per share of breweries in Nigeria. These non-significant relationships suggest that variations in these expenses do not significantly impact the profitability and financial performance of breweries in terms of their earnings per share. These findings highlight the need for further exploration of other factors that may influence profitability in the brewing industry in Nigeria. The study therefore conclude that corporate overheads does not significantly affect operational performance of breweries in Nigeria. The implication of the finding is that there is a need for breweries in Nigeria to consider a broader range of factors beyond the studied expenses to enhance their profitability and operational performance. The study, therefore, recommends that breweries should consider incorporating additional financial performance indicators, such as return on assets, return on equity, and gross profit margin, to gain a comprehensive understanding of their financial performance and identify areas for improvement. In addition to financial indicators, breweries should focus on non-financial factors like product quality, customer satisfaction, brand reputation, and market share, as these can significantly impact profitability and overall competitiveness. Breweries should analyze all aspects of the value chain, including production, distribution, procurement, and overhead costs, to identify opportunities for cost optimization. Managing cost drivers effectively can improve cost efficiency and enhance financial performance.

Pengaruh Komisaris Independen, Sales Growth, Profitabilitas, Firm Size dan Kepemilikan Institusional terhadap Tax Avoidance

Tax avoidance is an effort made to reduce the tax burden in order to obtain maximum profit in accordance with tax regulations. This study aims to identify whether independent commissioners, sales growth, profitability, firm size, and institutional ownership have an effect on tax avoidance. The object used in this study used the consumer cyclicals sector companies listed on the IDX for the period 2018 – 2021. The sampling technique used was a purposive sampling method with 68 companies over a 4 year period, resulting in a total sample of 272 research samples. The method in this study uses multiple linear regression analysis with quantitative data. Measurement of tax avoidance with the Effective Tax Rate (ETR) is obtained from income tax expense divided by profit before tax. Independent commissioners have no effect on tax avoidance. Sales growth has a negative and significant effect on tax avoidance. Profitability has a negative and significant effect on tax avoidance. Firm size has a negative and significant effect on tax avoidance. And institutional ownership has no effect on tax avoidance. The results of the F test were 16.391 and a significance value of 0.000 so that the regression model in the study was declared feasible or accepted. The adjusted R square test results of 0.325 (32.5%) variable tax avoidance are influenced by independent variables, namely independent commissioners, sales growth, profitability, firm size and institutional ownership.

Inflation-related tax distortions in business valuation models: A clarification

The current corporate income tax (CIT) expense occupies just one line item on the statement of profit or loss and other comprehensive income. However, it is a unique line item following tax rules and not financial reporting rules. The difference between these rules is that it reflects the effective tax rate (ETR), which can differ from the statutory tax rate (STR). With inflation, this ETR-STR difference can be more significant due to the contribution of tax distortions. In this study, we expand on the standard formulas for the ETR by analyzing the effects of inflation-related tax distortions when computed under the following four cases: (i) Historical-cost-based accounting under a nominal tax basis, (ii) Fair-value-based accounting under a nominal tax basis, (iii) Historical-cost-based accounting under a real tax basis, and (iv) Fair-value-based accounting under a real tax basis. Further, we suggest a modified model for business valuation considering these tax distortions and provide a general formula to independently calculate the value of inflation-related tax distortions.

Current and deferred income tax in the era of the COVID-19 pandemic in the light of the financial statements of WIG30 companies

Purpose: The article shows the impact of the COVID-19 pandemic on the amount of income tax expense (including current and deferred tax).Methodology/approach: The legal status of income tax in accounting is presented, taking into account issues that should be applied in the pandemic era. An empirical study was carried out based on the content analysis of financial statements for 20192021 of entities included in the WIG30.Findings: The pandemic mainly reduced income tax expense while increasing deferred tax assets, after meeting certain conditions, primarily due to tax losses.Originality/value: The article shows the impact of the pandemic on the amount of income tax expense (including current and deferred tax), an area not yet explored. The starting point for future scientific research shows the impact of the pandemic based on another (larger) research sample.

Pengaruh Penjualan dan Beban Pajak Penghasilan Terhadap Laba Bersih Perusahaan Sub Sektor Perkebunan yang Terdaftar di BEI

The plantation sector is the economy's backbone and the state's foundation. The plantation sector contributed IDR 429 trillion to the national Gross Domestic Product (GDP) in 2016. Oil palm, as the main plantation product in Indonesia, has a high economic value compared to other plantation products and is one of the primary sources of the country's foreign exchange. The increase in local demand is one of the main factors influencing the high production of palm oil. However, the increase in palm oil production is inversely proportional to the company's net profit increase. This research aims to determine the effect of sales and tax expenses on the net profit of plantation sub-sector companies listed on the IDX. This research uses secondary data from the Indonesia Stock Exchange website. The population in this study were 25 companies in the plantation sub-sector listed on the IDX but only used 21 selected companies as research samples with four years of observation. The financial data is the annual financial reports from 2018 to 2021. The results show no significant effect between sales and net profit. Meanwhile, income tax expense has a significant effect on net income partially. Sales and income tax expenses together affect net income simultaneously.

PENGARUH COST OF DEBT, BEBAN PAJAK PENGHASILAN DAN KEBIJAKAN DIVIDEN TERHADAP MANAJEMEN LABA PADA PERUSAHAAN CONSUMER NON CYCLICALS YANG TERDAFTAR DI BURSA EFEK INDONESIA TAHUN 2017-2021

This study aims to examine and analyze the effect of the cost of debt, income tax burden and dividend policy on earnings management in consumer non-cyclicals companies listed on the Indonesia Stock Exchange in 2017-2021. This research uses quantitative and associative research types from secondary data sources. The population used in this study were 104 consumer non-cyclicals companies listed on the IDX. The research sample was selected using a purposive sampling technique and a sample of 20 companies was obtained. Data collection techniques are documentation studies and non-participant observations. The data analysis technique used is panel data regression analysis with the Eviews 9 test tool. The results show that the cost of debt, income tax expense and dividend policy simultaneously influence earnings management in consumer non-cyclicals companies listed on the Indonesia Stock Exchange in 2017- 2021.

Tax Planning for Article 21 Income

Tax planning is an effort made by taxpayers or groups of taxpayers to regulate taxes, both income taxes and other taxes, so that they are in the lowest possible position as long as it is still possible by the provisions of the applicable tax regulations. The planning results are not the result of tax savings, tax avoidance, and tax smuggling, so the tax authorities can accept these results. By doing tax planning (tax planning), companies can get more significant income because the tax burden paid by the company is smaller than before doing tax planning. This research used descriptive and comparative methods with a qualitative approach to PT Khatulistiwa. It will show which of the three methods of calculating income tax article 21 is more profitable among the three methods, namely the net, gross, and gross up methods. The results show that from the calculation of Article 21 income tax using the net, gross, and gross up method, the most efficient method of income tax expense is the gross-up method because there is a tax allowance of Article 21 income tax given by the company to employees

Analisis Komponen Laba Rugi pada Perusahaan LQ45 Periode 2014-2019

<p>The COVID-19 pandemic has greatly impacted many corporate sectors, including LQ45 companies, which are also feeling the consequences. Many companies have suffered losses and even bankruptcies due to COVID 19 since March 2020. One of the things that really have an impact is the sales department which later affects net profit. Given that the pandemic is still not over, many companies are trying to adjust so that sales can continue to generate maximum numbers by preparing many plans. Therefore, the author is interested in conducting an analysis related to the profit and loss component of the LQ45 company because the company always creates considerable sales. The proxies of the profit and loss component use Net Profit and its analysis tools in view of Net Sales and Income Tax Expense. This study aims to determine whether there is an influence between Net Sales and Income Tax expenses on Net Profit partially or simultaneously. The sample collection system chosen was purposive sampling and there were 6 companies out of 45 companies listed on the Indonesia Stock Exchange (IDX). Furthermore, the data analysis chosen is descriptive and verifiable data analysis using the SPSS 26 application. The results showed that there was no influence between Net Sales and Net Profit partially, but there was an influence between Income Tax Expense on Net Profit in general. Furthermore, there is an influence between Net Sales and Income Tax Expense on Net Profit simultaneously.</p>

Case Analysis " Analysis Of Income Tax Planning Article 21 As An Efforts To Save Corporate Income Tax Expense At Pt. CAS “

Case Analysis " Analysis Of Income Tax Planning Article 21 As An Efforts To Save Corporate Income Tax Expense At Pt. CAS “

Pengaruh Lokasi Penjualan Dan Kualitas Pelayanan Terhadap Kepuasan Pelanggan Pada Boos Coffe Gayo Roastery Kecamatan Medan Johor Sumatera Utara

The high income tax expense causes the company to carry out earnings management. Decreased earnings management tends to result in high tax planning. The company's ability to pay off short-term liabilities by using good current assets (current ratio) will reduce earnings management practices. This study aims to test and analyze how much influence the income tax expense has on earnings management, test and analyze how much influence tax planning has on earnings management, and to test and analyze how much influence the current ratio has on earnings management. This type of research is quantitative by using the sampling technique is purposive sampling. To collect sample data, researchers used secondary data, namely documentation on the Indonesia Stock Exchange (BEI). To process the data obtained, the researchers used SSS as a dataanalysis tool. Based on the results of the study, it can be concluded that the variable income tax expense, tax planning and current ratio simultaneously do nothave a significant effect on earnings management. So it can be concluded that income tax expense (X1), tax planning (X2) and current ratio (X3) do not simultaneously affect earnings management (Y) in property companies listed on the Indonesia Stock Exchange (BEI)

PENGARUH UKURAN PERUSAHAAN, RASIO HUTANG PADA MODAL, MARGIN LABA KOTOR DAN BIAYA OPERASIONAL TERHADAP BEBAN PAJAK PENGHASILAN BADAN

This research was conducted to analyze The Effect of Firm Size, Debt to Equity Ratio, Gross Profit Margin, and Operational Cost on Corporate Income Tax Burden either partially or simultaneously. The sampling method is purposive sampling. The number of samples used in this study were 10 pharmaceutical sub-sector companies listed on the Indonesia Stock Exchange (IDX) with a total sample of 50 data. The type of data is secondary data sourced from the Indonesia Stock Exchange. The data analysis method used is multiple linear regression analysis. The findings of this study are based on the results of the t-test, it can be concluded that partially there is a negative influence between the ratio of DER to corporate income tax expenses and for operating costs, it partially has a positive effect on the burden of corporate income tax on pharmaceutical companies listed on the Stock Exchange for the 2016-2020. Partially, company size and gross profit margin have no effect on the burden of corporate income tax on pharmaceutical companies listed on the IDX for the 2016-2020. Based on the results of the F test, it is concluded that company size, DER, GPM and operating costs have a positive effect on corporate income tax expenses in pharmaceutical companies listed on the Indonesia Stock Exchange for the 2016-2020.

Influence of some Characteristics of Listed Companies on Fiscal Pressure

Numerous studies in the national and international literature highlight the link between fiscal pressure and various characteristics of companies, such as: company size, level of indebtedness, field of activity in which the company operates, level of investments in fixed or current assets, corporate governance and corporate social responsibility index. In what concerns the link between fiscal pressure and company size, there are two different points of view: one that claims that large companies are subject to greater public scrutiny and therefore bear a "political cost" in the form of higher effective tax rates, and the other which considers that large companies pay less taxes because they allot more resources to tax planning. This study aims to analyse the extent to which the level of fiscal pressure is influenced by the size of companies in our country, particularly those listed on the BVB (Bucharest Stock Exchange), a characteristic defined by three indicators: turnover, average number of employees and total assets held by companies. Regarding the level of fiscal pressure, the variables used in the analysis include the effective tax rate, calculated using calculation formulas that include both current corporate income tax expense and deferred tax expense. Since corporate income tax is only a part of the total taxes and duties that the company has to bear, the research was extended to an indicator that includes in addition to corporate income tax, other expenses incurred by companies as well, respectively those related to contributions for their employees, but also expenses with other taxes and duties due to the state budget.

PENGARUH TRANSAKSI LEASING TERHADAP PERHITUNGAN PAJAK PENGHASILAN BADAN PADA PT RODES CHEMINDO

The purpose of this research is to know implementation of financing leasing according to income tax provision and its impact to entity’s tax expense at PT Rodes Chemindo. Types of this research is in form of descriptive research with case study in PT Rodes Chemindo and the research object is analyzing finance leasing transaction in PT Rodes Chemindo and analyzing the impact of finance leasing transaction to entity’s income tax. Data which is collected is secondary data include the presentation of financial statement, income tax expense calculation, finance leasing transaction, depreciation calculation, accounting of finance leasing transaction and other information which is related with this research. The research result shows that implementation of finance leasing has impact in increasing entity income tax in PT Rodes Chemindo. Fiscal expense in the company is not in accordance with income tax provision because the company recognizes the depreciation expense and interest expense of leased fixed asset. Income tax payable after implementation of income tax provision in year 2020 is Rp 78,357,833.00 with result that there is increasing of income tax payable year 2020 in Rp 8,264,960.00. Positive fiscal correction should be done for interest expense in Rp 67,160,860.00 and depreciation expense in Rp 99,218,750.00. The company can recognize leasing installment payment in Rp 128,811,570.00 as deductible expense in year 2020. The company should classify the leased fixed asset as leasing transaction based on income tax provision in calculating the income tax payable. The company records the finance leasing transaction as fixed asset. Payment of leasing is recorded as deduction of leasing liabilities. The company also records the depreciation expense of leased fixed asset and interest expense. The company has properly classified the leased fixed asset as leasing transaction. Income tax expense in the company is Rp 626,371,240.00 and income tax expense after implementation of income tax provision is Rp 634,636,200.00.

Pengaruh Profitabilitas Dan Likuiditas Terhadap Agresivitas Pajak Pada Perusahaan Subsektor Perdagangan Besar Dan Perdagangan Eceran Yang Terdaftar Di Bursa Efek Indonesia Periode 2017 - 2020

This study aims to examine the effect of profitability and liquidity as independent variables on tax aggressiveness as the dependent variable. Tax aggressiveness in this study is measured by the Effective Tax Rate by comparing the income tax expense with pre-tax profit. Profitability is measured by the ratio of return on assets, liquidity is measured by the current ratio.This type of research is quantitative using secondary data sources in the form ofannual financial reports or annual reports through the Indonesia Stock Exchange (IDX). The population used in this study is large trading and retail trading companies listed on the Indonesia Stock Exchange (IDX) starting from 2017 – 2020. The sampling technique in this study used purposive sampling with the specified research criteria so as to obtain a sample of 22 companies with data obtained as many as 88 data. The analytical method used is a multiple linear regression test, classical assumption test, determination coefficient test, F test and T test using the Statictical Package For the Social Sciences (SPSS) application program version 25.The results of the analysis of this study stated that partially profitability had a negative and significant effect on tax aggressiveness and liquidity had no effect on tax aggressiveness. While simultaneous profitability and liquidity affect the aggressiveness of taxes.

A Brief Discussion on the Key Points of Enterprise Income Tax Audit

Based on the analysis of the main factors affecting the annual income audit fee payable by the enterprise, this paper proposes several key audit matters for the key audit standards and considerations for the relevant enterprise income tax, and the key audit of the accounting of the relevant enterprise income tax expenses. In the key audit of the existing enterprise income tax, the following key audit matters are mainly considered: first, focus on reviewing whether the tax revenue, cost, expense and accounting method of the existing enterprise are accurate, second, focus on reviewing whether the tax adjustment policy of the income of the existing taxpaying enterprise is correct, and third, from the perspective of the national tax policy, whether the tax payment of the enterprise under review fully meets the preferential conditions of the national tax policy, on the basis of this key point, Several audit focus issues on corporate income tax accounting under the new National Tax Accounting Standards were raised.

Tindakan Agresivitas Pajak dipandang dari Teori Akuntansi Positif

Taxes are one of the state's largest sources of income. For businesses, taxes are a burden that can reduce profits. The government wants high tax revenues, but businesses want low tax revenues. Therefore, this is a tax avoidance act that seeks to minimize the amount of tax a company pays for violating or being legal. This study aims to determine how tax aggressiveness can be seen from aggressive accounting theory. The tax aggressiveness measure uses the company's ETR. This is the income tax expense divided by the profit before income tax. The sample of this survey consists of manufacturers listed on the Indonesia Stock Exchange (IDX) between 2017 and 2019. Targeted sampling was used to select the samples, and 54 companies obtained samples. The analytical method used is multiple regression analysis. The results of this study show that the Inventory Intensity does not affect tax aggressiveness. Capital Intensity, Fixed Assets Intensity, and Firm Size have a significant positive impact on tax aggressiveness.

The Effect of Tax Aggressiveness, Firm Size, and Profitability on Corporate Social Responsibility Disclosure in Mining Companies

In mining companies, exploitative behavior and a lack of sense of responsibility towards the environment will threaten the sustainability of the availability of natural resources, and cause disharmony in relations with the community around the company. So it is important for mining companies to carry out social responsibility towards the environment and the community around the company so that the natural resources needed are still available. This study was conducted to determine the effect of tax aggressiveness, firm size, and profitability on corporate social responsibility disclosure in mining companies listed on the IDX. In this study CSR Disclosure is measured by disclosure criteria based on GRI indicators, tax aggressiveness is measured by income tax expense and profit before tax, Firm Size is measured using total sales, profitability is measured by the ROA (Return On Asset) indicator. This study uses quantitative methods. The population selected was 44 companies, for 2 years in 2018-2019 using the purposive sampling method, in order to obtain a sample of 15 companies that met the criteria. Data were analyzed using multiple linear regression. The results of this study indicate that tax aggressiveness has a effect on CSR Disclosure, while firm size and profitability have a negative effect on CSR Disclosure.