Effect of Macroeconomic Variables and Tax Rates on the Six ASEAN Countries Tax Ratio


Effria Wijayanti Wahyuningsih(1), Milla Sepliana Setyowaty(2),


(1) Universitas Indonesia
(2) Universitas Indonesia

Abstract


The tax sector supports a stable process of economic growth and the tax ratio is considered an indicator that can be used to assess the performance of the taxation sector. This study examines the impact of macroeconomic and tax rates on the magnitude of the tax ratio in the case of six ASEAN member countries during the period 1998 to 2018. Data processing was performed using panel data regression using the Generalized Least Square (GLS) method with the STATA program. This study has very interesting results because inflation has a significant influence on the level of a country's tax ratio. The relationship between inflation and taxes is said to be positive, so any increase or decrease in inflation will also cause an increase or decrease also in the taxation sector. In other words, inflation and taxes move in the same direction but with different magnitudes. Countries with a stable macroeconomic situation will create greater opportunities for investment and more jobs are created. This will further increase the purchasing power of consumers and assume the tax burden will be easy for the public

Keywords


Tax Ratio, Macroeconomic, Inflation Rate

Full Text:

PDF

References


Adhikari, A (2006). Public Policy, Political Connection and Effective Tax Rate: Longitudinal Evidence from Malaysia. Journal of Accounting and Public Policy, 574-595.

Ardyansyah, D. (2014). Pengaruh Size, Leverage, Profitability, Capital Intensity Ratio dan Komisaris Independen Terhadap Effective Tax Rate (ETR). Diponegoro Journal of Accounting Volume 3, No. 2, 1-10.

Asean Briefing. (2018, 07 26). Comparing Tax rates Across ASEAN. Retrieved from www.aseanbriefing.com/news/2018/07/26/comparing-tax-rates-accross-asean.html

Bryman, A. (2012). Social research Methods 4th Edition. Oxford University Press. Oxford: Oxford University Press.

Cao, J., & Cui, Y. (2017). An Alternative View on Determinants of the Effective Tax Rate: Evidence from Chinese Listed Companies. Emerging Markets Finance and Trade, 1001-1014.

Chiou, Y., Hsieh, Y., & Lin, W. (2014). Determinants of Effect Tax Rates For Firm Listed On China`s Stock Markets: Panel Models With Two-Sided Censors. Journal of Economic & Financial Studies, 01-05.

Creswell, J. W. (2014). Research Design Qualitative and Quantitative and Mixed Methods Approaches (Vol. Fourth Edition). California: SAGE Publication.

Darmadi, I. N., & Zulaikha. (2013). Analisis Faktor Yang Mempengaruhi Manajemen Pajak Dengan Indikator Tarif Pajak Efektif Studi Empiris Pada Perusahaan Manufaktur Yang Terdaftar Di Bursa Efek Indonesia Pada Tahun 2011 - 2012. Diponegoro Journal Of Accounting Volume 2, 1-12.

Derashid, C, & Zhang, H. (2003). Effective Tax Rates and the Industrial Policy Hypothesis: Evidence from Malaysia. Journal of International Accounting Auditing and Taxation, 45–62.

Domar, H. (1939). An essay in dynamic economics. Economic Journal.

Dyreng, D., S., Hanlon, M., & Maydew, E. L. (2010). The Effects of Executives on Corporate Tax Avoidance. The Accounting Review: July 2010, Vol. 85, 1163-1189.

G, H., & Song, F. (2006). The determinants of capital structure: Evidence from China. China Economic Review 17 (1), 14–36.

Imelia, S. (2015). Analisis Faktor Yang Mempengaruhi Manajemen Pajak dengan Indikator Tarif Pajak Efektif (ETR) Pada Perusahaan LQ45 yang Terdaftar Dalam Bursa Efek Indonesia Tahun 2010-2012. Jom Fekon Vol 2 No.1.

Larking, B. (2005). The importance of being permanent, bulletin for International Fiscal Documentation.

Liu, X., & Cao, S. (2007). Determinants of Corporate Effective Tax Rates: Evidence from Listed Companies in China. The Chinese Economy, 49-67.

Neuman, W.L. (2014). Social Research Methods: Qualitative and Quantitative Approaches. Harlow, United Kingdom: Pearson Education Limited.

Noor, R., Fadzilah, N., & Matsuki, N. (2010). Corporate Tax Planning: A Study On Corporate Effective Tax Rates of Malaysian Listed Companies. International Journal of Trade, Economics and Finance Vol.1.

Richardson, G., & Lanis, R. (2007). Determinants of the variability in corporate effective tax rates and tax reform: Evidence from Australia. Journal of Accounting and Public Policy, 689–704.

Rosdiana, H., & Irianto, E. (2014). Pengantar Ilmu Pajak Kebijakan dan Implementasi di Indonesia. Jakarta: Rajagrafindo Persada.

Setyowati, M.S. (2014). Fenomena Persaingan Pajak Antara Negara-Negara Anggota ASEAN: Suatu Studi Empiris Tahun 1990-2012. Universitas Indonesia.

Stamatopoulos, I., Hadjidema, S., & Eleftheriou, K. (2019). Explaining corporate effective tax rates: Evidence from Greece. Economic Analysis and Policy, 236-254.

Sugiyono. (2002). Metode Penelitian Administrasi. Bandung: CV Alfabeta.

Susanto, I., & Rahayu, N. (2019). Corporate Tax Management Mengulas Upaya Pengelolaan Pajak Perusahaan secara Konseptual-Praktikal. Jakarta: Observation & Research of Taxation.

Wahab, A.E.A., Ariff, A. M., Marzuki, M. M., & Sanusi, Z. M. (2017). Political connections, corporate governance, and tax aggressiveness in Malaysia.

Zhang, H., Li, W., & Jian, M. (2012). How Does State Ownership Affect Tax Avoidance? Evidence from China. School of Accountancy: Singapore Management University.




DOI: https://doi.org/10.31289/jap.v10i1.3090

Article Metrics

Abstract view : 0 times
PDF - 0 times

Refbacks

  • There are currently no refbacks.


Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

Universitas Medan Area

Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License