<![CDATA[The purpose of this study is to examine the impact of tax policy changes on business financial reporting in Indonesia's manufacturing sector. This study uses panel data from 50 manufacturing businesses listed on the Indonesia Stock Exchange (IDX) between 2018 and 2023 to assess the association between these variables using descriptive analysis and linear regression. The descriptive study revealed that manufacturing enterprises' average net profit is IDR150 billion, with an average tax expense of IDR50 billion, an average deferred tax of IDR25 billion, and an average operational cash flow of IDR300 billion. Further linear regression analysis demonstrates that changes in tax rates have a considerable negative impact on net income and operating cash flow, but a significant positive impact on tax expense and deferred tax. Furthermore, adjustments in deferred tax policy were found to have a considerable favorable effect on net income, deferred tax, and operating cash flow, but not on tax expense.These findings stress the significance of accurate and open financial reporting, as well as understanding how tax legislation changes affect business financial management. This study adds to the accounting and taxation literature by providing insights into the impact of tax legislation on financial reporting in Indonesia's manufacturing sector.]]>
Copyrights © 2024
