Determinants of Tax Avoidance in Technology Sector Companies Listed on The BEI Period 2019-2023

Abstract

Over the past few years, technology companies have overcome major challenges in providing the tools and technology the world needs to work remotely, run online businesses, and keep the world economy running over the impact of the covid-19 pandemic. The technology sector is believed to be fundamentally strong and will overcome adverse conditions to return to being a driver of economic growth, although it is expected that the level of volatility will remain high in most sectors This study aims to determine the effect of institutional ownership, human capital expense, research and development expense, advertising expense, capital structure on tax avoidance with Return On Assets as control variable. The population is technology companies listed on Indonesian Stock Market Exchange 2020-2023, with a samples of 75 companies. This research first testing with descriptive analysis, then using classic assumption test include normality test, multicollinearity test, heteroscedasticity test, and autocorrelation test. And after that this study uses Hypothesis testing in the panel data regression statistical test with the Random effect model (REM) and descriptive research with quantitative approach. The results of the analysis show that institutional ownership have an insignificant effect on tax avoidance and advertising expense have an insignificant effect on tax avoidance. While Human capital have effect on tax avoidance, Research and Development expense have effect on tax avoidance and capital structure have effect on tax avoidance.