FIRM SIZE AND PROFITABILITY AS DRIVERS OF CORPORATE INCOME TAX: EVIDENCE FROM INDONESIA’S FOOD AND BEVERAGE INDUSTRY AMID FISCAL TRANSFORMATION

Abstract

This study investigates the effect of company size and profitability on corporate income tax among food and beverage firms listed on the Indonesia Stock Exchange (IDX) during 2022–2024. Using 39 firm-year observations from 13 companies, this quantitative study applies multiple linear regression with SPSS 27. And the results of the test using the F test showed that the significant value produced was 0.000 < 0.05 and the value of F (calculated) was 301.663 > 3.267 F table, while the results of the t test in this study showed that the significant value of the Company Size was 0.000 < 0.05 and the value of t (calculated) was 22.921 > 1.690 t table and the significant value of Profitability was 0.000 < 0.05 and the value of t (calculated) was 8.111 > 1.690 t table. Company Size and Profitability Have a Positive and Significant Effect on Corporate Income Tax on the Indonesia Stock Exchange for the 2022-2024 Period. And profitability affects corporate income tax on the Indonesia Stock Exchange for the 2022-2024 period. The results show that both firm size and profitability have a positive and significant effect on corporate income tax, supporting the agency theory framework. The findings imply that larger and more profitable firms tend to contribute higher tax payments, reflecting stronger compliance and fiscal capacity. This research provides insights for policymakers and corporate managers to strengthen tax planning and compliance strategies in Indonesia’s post-pandemic economy.