Company Characteristics as a Determinant of Tax Aggressiveness in Real Estate and Property Companies in Indonesia

Kautsar Riza Salman


This study aims to obtain empirical evidence regarding the effect of company characteristics on the level of tax aggressiveness. The level of tax aggressiveness is measured by the effective tax rate (ETR). Company characteristics in this study are represented by leverage, capital intensity, inventory intensity, and liquidity. The population in this study are all companies engaged in real estate and property and listed on the Indonesia Stock Exchange (IDX) for the 2015-2019 period. This study's empirical finding is that leverage positively affects the effective tax rate (ETR). High leverage results in a lower level of tax aggressiveness because it is proven that companies pay higher income taxes. This study did not find the effect of capital intensity, inventory intensity, and liquidity on the level of tax aggressiveness. The policy implication for tax institutions is that high leverage on real estate and property companies does not necessarily increase the tendency of corporate tax aggressiveness; even the research results show the opposite result.


tax aggressiveness; leverage; capital intensity; inventory intensity; liquidity

Full Text:



Adhikari, A., Derashid, C., & Zhang, H. (2006). Public policy, political connections, and effective tax rates: Longitudinal evidence from Malaysia. Journal of Accounting and Public Policy, 25(5), 574–595.

Apriyanti, H. W., & Arifin, M. (2021). Tax aggressiveness determinants. Journal of Islamic Accounting and Finance Research, 3(1), 27–52.

Gupta, S., & Newberry, K. (1997). Determinants of the variability in corporate effective tax rates: Evidence from longitudinal data. Journal of Accounting and Public Policy, 16(1), 1–34.

Hanum, H. R., & Zulaikha. (2013). Pengaruh Karakteristik Perusahaan Corporate Governance Terhadap Effective Tax Rate. Diponegoro Journal of Accounting, 2(2), 1–10.


Hidayati, F., Kusbandiyah, A., Pramono, H., & Pandansari, T. (2021). Pengaruh Leverage, Likuiditas, Ukuran Perusahaan, Dan Capital Intensity Terhadap Agresivitas Pajak (Studi Empiris Pada Perusahaan Manufaktur Yang Terdaftar Di Bursa Efek Indonesia Tahun 2016-2019). Ratio : Reviu Akuntansi Kontemporer Indonesia, 2(1), 25–35.

Indradi, D. (2018). PENGARUH LIKUIDITAS, CAPITAL INTENSITY TERHADAP AGRESIVITAS PAJAK ( Studi empiris perusahanManufaktur sub sektor industri dasar dan kimia yang terdaftar di BEI tahun 2012-2016.). Jurnal Akuntansi Berkelanjutan Indonesia, 1(1), 147.

Janssen, J. E., & Buijink, W. (2000). Determinants of the variability of corporate effective tax rates (ETRs): evidence for the Netherlands. Meteor Research Memorandum.

Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4), 305–360.

Noor, R., Fadzillah, N. S. M., & Mastuki, N. A. (2010). 34-C165. 1(2), 189–193.

Richardson, G., Taylor, G., & Lanis, R. (2013). The impact of board of director oversight characteristics on corporate tax aggressiveness: An empirical analysis. Journal of Accounting and Public Policy, 32(3), 68–88.

Salman, K. R. (2018). The tax aggressiveness behavior in the companies complying with the Sharia. Journal of Applied Economic Sciences, 8(62), 2493–2501.

Suyono, E. (2018). External Auditors’ Quality, Leverage, and Tax Aggressiveness: Empirical Evidence From The Indonesian Stock Exchange. Media Ekonomi Dan Manajemen, 33(2).

Wang, Y., Campbell, M., & Johnson, D. (2014). Determinants of Effective Tax Rate of China Publicly Listed Companies. International Management Review, 10, 10.

Yao-Chih Hsieh. (2012). New evidence on determinants of corporate effective tax rates. African Journal of Business Management, 6(3).


Copyright (c) 2022 Media Trend

Creative Commons License

Mediatrend © 2015 - Journal of Economic & Development Studies | Development Economics Program - Faculty of Economics and Bussiness, Trunojoyo University