<![CDATA[The gap between statutory tax rates and the actual effective tax burden paid by companies has become a central issue in taxation literature, particularly in the Basic Materials sector which shows significant ETR fluctuations. The purpose is to investigate, from an agency theory perspective, how sales growth, profitability (ROA), firm size, leverage (DER), capital intensity affect the Effective Tax Rate (ETR). Utilizing secondary data from the financial statements of 26 Basic Materials sector firms registered on the IDX for the years 2022–2025, takes a quantitative approach, yielding 104 observations. Panel data regression with the Random Effect Model (REM) utilising EViews 12 software was used for analysis. The findings indicate that whereas sales growth, firm size, leverage, capital intensity do not significantly impact ETR, only profitability (ROA) does. All independent variables have a considerable affect on ETR at the same time.]]>
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