Research Article
The Effect of Financial Ratio on Corporate Income Tax in Manufacturing Sector Companies for the 2018-2022 Period
@INPROCEEDINGS{10.4108/eai.25-5-2024.2349370, author={Aditya Wahyu Prabowo and Donald Bintang Satria and Meita Novia}, title={The Effect of Financial Ratio on Corporate Income Tax in Manufacturing Sector Companies for the 2018-2022 Period}, proceedings={Proceedings of the 4th International Conference on Law, Social Sciences, Economics, and Education, ICLSSEE 2024, 25 May 2024, Jakarta, Indonesia}, publisher={EAI}, proceedings_a={ICLSSEE}, year={2024}, month={8}, keywords={tax finance solvency liquidity activity ratio}, doi={10.4108/eai.25-5-2024.2349370} }- Aditya Wahyu Prabowo
Donald Bintang Satria
Meita Novia
Year: 2024
The Effect of Financial Ratio on Corporate Income Tax in Manufacturing Sector Companies for the 2018-2022 Period
ICLSSEE
EAI
DOI: 10.4108/eai.25-5-2024.2349370
Abstract
The manufacturing industry is a major contributor to the national tax revenue, primarily through Corporate Income Tax, yet there is still no clear empirical evidence regarding the relationship between financial ratios and Corporate Income Tax. The purpose of this study is to analyze the influence of financial ratios, including Solvency, Liquidity, and Activity Ratios, on Corporate Income Tax in the Manufacturing Sector. This research employs purposive sampling technique, obtaining financial reports from 21 manufacturing companies in 2018-2022. Through multiple linear regression analysis, it is found that overall Financial Ratios, encompassing solvency, liquidity, and activity ratio, positively affect corporate income tax. Therefore, this study is expected to contribute to assisting manufacturing companies in managing their tax obligations more effectively and optimizing financial performance, considering the largest portion of national tax revenue comes from the manufacturing sector.