Dampak Faktor Eksternal Dan Internal Terhadap Effective Tax Rate Perusahaan Sektor Infrastruktur, Utilitas Dan Transportasi Di Bursa Efek Indonesia

Abstract

The Indonesian Government collects taxes from its citizens to fund State Budget (APBN). On average, contribution of tax revenue to the State Budget within the period of 2010-2015 was 71 percent. The figure exemplifies significant contribution of tax revenue to the sustainability of governance and development in Indonesia. Previous literature suggest that corporate external and internal factors have influence for corporate tax payment and effective tax rate. However, there have been lack of empirical evidence in Indonesia. The objectives of this research are: (1) to analyse the growth of corporate effective tax rate (ETR); (2) to analyse factors that have influence on corporate financial performance through a model of effective tax rate from the infrastructure, utility and transportation sector (IUT) in the Indonesian Stock Exchange (Bursa Efek Indonesia/BEI); and (3) to analyse the impact of corporate external and internal factors to the tax payment and effective tax rate from the infrastructure, utility and transportation sector (IUT) in the Indonesian Stock Exchange (BEI). Selected companies generated profits in the period 2010 – 2015. The research uses econometric model which formulized through a series of stages namely specification model, identification model, estimation model, validation model and simulation model. The model consists of 20 equations, 7 structural equations and 13 identity equations. The model was estimated using a 2 SLS (two stage least square) method. Data analysis uses SAS/ETS version 9.4 program. Model validation and simulation utilizes Siedel method. Results show: (1) IUT companies in the BEI are relatively comply in terms of paying taxes, it can be seen from the average ETR of IUT sector that is not significanly different with the other sector in BEI; (2) the effective tax rate model was constructed from the equations of sales, TC (total cost), DA (depreciation and amortization), AT (fixed asset), AL (current asset), debt (DEBT), and INT (interest expense); and (3) The validation of the effective tax rate model concludes that this model was valid, thus represent the natural environment; and the followings are the results of the tax revenue simulation model (a) the increase in tax rate affects increase in tax and ETR; (b) the decrease in tax rate affects decrease in tax and ETR; (c) the decrease in Central Bank (BI) interest rate affects decrease in both tax and ETR; (d) the increase in GDP affects increase in tax and ETS; (e) the increase in inflation affects increase in tax and ETR; (f) the depreciation of IDR (Indonesian rupiah) exchange rate affects increase in tax and ETR; (g) equity increases have an impact on tax increases and ETR; (h) HPPBUA decreases have an impact on tax increases and ETR; (i) The simulation scenario of IDR exchange rate depreciation combination or the increse of tax rate with increasing EQ or the use of HPPBUA have the highest impact on the increase of financial performance, tax payment and ETR. The following are the managerial implication for corporate: (1) the ETR in IUT Sector is not significantly different from the JSE average ETR, that is why maintaining the existing tax payment policy and the ETR rate or tax planing is already an appropriate thing to do, (2) SIZE variable, GB, PC, DA, HPPBUA, EQ, SALES, DEBT dan BIR are having impacts on the corporate financial performance, so it is recomended to expand the business network, perform a merger/ acquisition, efficiency, and finding a low budget financing on IUT Sector; and (3) to increase the corporate financial performance as the IDR exchange rate are being depreciated or the government is raising the tax rate that is when the corporate is sugested to do EQ enhancing or to do HPPBUA efficiency. The following are the managerial implication for government: (1) the ETR in IUT Sector is not significantly different from the JSE average ETR, that is why the government should maintaining the existing tax policy or regulacy and encourage corporates to put their name on JSE list supported by administration convenience; (2) SIZE Variable, GB, PC, DA, HPPBUA, EQ, SALES, DEBT and BIR are having impacts on corporate financial performance. To increase the corporate financial performance it is strongly suggested for the government to make tax policy or regulation that is able to push corporates to do size upgrade, perform a merger/ acquisition, efficiency, and finding a low budget financing on IUT Sector; and (3) to increase their tax payment and corporate ETR, as the IDR exchange rate are being depreciated or the government is raising the tax rate that is when the government is sugested to encourage and to facilitate the corporates to do EQ enhancing or to do HPPBUA efficiency. These followings are the recommendations for future studies: (1) should consider to focus on companies not listed in the BEI; (2) should explore to use samples from selected IUT sector companies from particular sub-sector; and (3) should add certain State Budget macroeconomic assumptions such as the oil price and oil and gas lifting in model.