Analysis of the Effect of Company Size, Profitability, Leverage, and Sales Growth on Tax Avoidance

Abstract

Manufacturing companies engaged in the trade, services and investment sub-sectors aim to improve sales strategies in order to increase company assets. Company size, profitability, leverage and sales growth in manufacturing companies are listed on the Indonesian Stock Exchange (IDX) from 2018 to 2020 by determining the sample using the purposive sampling method, according to the sampling criteria of 90 companies. Multiple linear regression analysis technique performed with the application of SPSS 26 multivariate analysis shows that Company size and Leverage have no effect on Tax Advoidance. Profitability, and leverage have an influence on tax avoidance. This study provides suggestions that companies can develop tax planning strategies, to avoid tax evasion which can affect the company's performance among investors.