The Profitability, Capital Intensity, and Leverage, Their Effect on Tax Avoidance

Ammara Fayyaz Prasetyo ; Retno Indah Hernawati ; Harun Harun
Proceeding of the International Conference on Mana... 📅 2025 Vol 2, No 2 🔗 DOI: 10.61132/icmeb.v2i2.334
Abstract
Tax avoidance is an effort made by companies to reduce the amount of tax payable. The main source of state revenue is taxes, but tax avoidance that exploits legal loopholes to reduce the tax burden remains an issue on the Indonesia Stock Exchange during the period 2020 to 2024. This study aims to examine the effect of profitability, capital intensity, and leverage on tax avoidance. This study applies a quantitative research approach using secondary data obtained from annual financial reports published on the official website www.idx.co.id as well as from the respective company websites. The analytical method employed is multiple linear regression. The research population consists of property and real estate companies listed on the Indonesia Stock Exchange from 2020 to 2024, with a final sample of 92 observations selected through purposive sampling. The findings reveal that profitability and capital intensity significantly influence tax avoidance, whereas leverage shows no significant effect on tax avoidance.
Keywords
Capital Intensity; Financial Reports; Leverage; Profitability; Tax Avoidance
How to Cite

Ammara Fayyaz Prasetyo, et al. (2025). The Profitability, Capital Intensity, and Leverage, Their Effect on Tax Avoidance. Proceeding of the International Conference on Management, Entrepreneurship, and Business, 2(2). https://doi.org/10.61132/icmeb.v2i2.334

Ammara Fayyaz Prasetyo; Retno Indah Hernawati; Harun Harun, "The Profitability, Capital Intensity, and Leverage, Their Effect on Tax Avoidance," Proceeding of the International Conference on Management, Entrepreneurship, and Business, vol. 2, no. 2, 2025.

Ammara Fayyaz Prasetyo; Retno Indah Hernawati; Harun Harun. "The Profitability, Capital Intensity, and Leverage, Their Effect on Tax Avoidance." Proceeding of the International Conference on Management, Entrepreneurship, and Business, vol. 2, no. 2, 2025.

Ammara Fayyaz Prasetyo; Retno Indah Hernawati; Harun Harun. "The Profitability, Capital Intensity, and Leverage, Their Effect on Tax Avoidance." Proceeding of the International Conference on Management, Entrepreneurship, and Business 2, no. 2 (2025).

Ammara Fayyaz Prasetyo, et al. (2025) 'The Profitability, Capital Intensity, and Leverage, Their Effect on Tax Avoidance', Proceeding of the International Conference on Management, Entrepreneurship, and Business, 2(2). doi: 10.61132/icmeb.v2i2.334.

Ammara Fayyaz Prasetyo; Retno Indah Hernawati; Harun Harun. The Profitability, Capital Intensity, and Leverage, Their Effect on Tax Avoidance. Proceeding of the International Conference on Management, Entrepreneurship, and Business. 2025;2(2).

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