Determinants of Tax Aggressiveness Management in Listed Companies on the Indonesia Stock Exchange (IDX): Implications for Sustainable Development Goals

Objective: The aim of this research is to explore the elements that affect tax aggressiveness among mining firms listed on the Indonesia Stock Exchange. In particular, it looks into how profitability, leverage, company size, independent commissioners, audit committees, and multinationality nature of the firms impact tax aggressiveness. Theoretical Framework: This study uses agency theory to explain the relationship between company management (agents) and shareholders (principals), and its impact on tax aggressiveness. It also highlights conflicts of interest between management and tax authorities (the government), which can affect corporate tax policies. Method: Purposive sampling was used to collect 72 observations from 76 mining companies listed on the Indonesia Stock Exchange from 2018-2023 for this study. Panel data regression analysis using the common effect model. Results and Discussion: The findings showed that profitability and independent commissioners have a negative and significant effect on tax aggressiveness. In contrast, leverage and multinationality show a significant positive effect. However, no significant relationship was found between tax aggressiveness on firm size or audit committee. Research Implications: The findings of this study are expected to serve as a valuable reference for regulators and companies in the development of more effective tax policies, with the aim of reducing aggressive tax practices and achieving sustainable development goals. Originality/Value: To the best of the authors' knowledge, limited studies have examined the effect of multinationality on tax aggressiveness in Indonesia, making this research a valuable contribution. Moreover, the analysis period (2018 to 2023) and the use of a panel data regression approach provide recent and relevant empirical insights.