The Effect Of Digital Transformation And Audit Quality On Tax Avoidance In Manufacturing Companies

Abstract

This study aims to examine the effect of profitability, digital transformation, fixed asset intensity, leverage, audit committee, and audit quality on tax avoidance in manufacturing companies listed on the Indonesia Stock Exchange (IDX) during the 2022-2024 period. Tax avoidance is proxied by the Effective Tax Rate (ETR). This study uses a quantitative approach with secondary data obtained from annual reports and audited financial statements. Samples were selected using purposive sampling, resulting in 142 companies with a total of 426 observations. Hypothesis testing was conducted using multiple linear regression analysis with IBM SPSS Statistics 25. The results show that profitability has a positive effect on tax avoidance, whereas fixed asset intensity has a negative effect on tax avoidance. Digital transformation, leverage, audit committee, and audit quality have no effect on tax avoidance. These findings indicate that profitability and fixed asset intensity remain associated with tax avoidance practices in manufacturing companies