The influence of Profitability, Operational Efficiency and Inventory Management on the Corporate Income Tax Planning for auto Parts Industry Group on Board of Investment in Eastern Industrial Estate

Abstract

          Companies or juristic partnerships are required to plan corporate income tax to ensure accurate, complete, and tax-saving taxes. to reduce tax problems that may arise in the future Therefore, tax planning is an important factor that must be considered in any business operation as the law requires profitable companies to be taxed at a maximum rate of 20 percent of taxable profits
          The purposes of this study were to study The influence of profitability, operational efficiency and inventory management on the corporate income tax planning for auto parts industry group on board of investment in Eastern industrial estate. The samples comprise a company in a database of companies listed on Thailand Board of Investment (BOI) and Financial Statement on the Department of Business Development (DBD) during period in 2016 and 2020. The data used in the study included totaling 69 companies with a total of 393 data. Independent variables are profitability, operational efficiency and inventory was measured by net profit margin, return on assets, equity turnover, total asset turnover, inventory turnover and average inventory period. The dependent variable tax planning was measured by effective tax rate (ETR) and the ratio of tax to total assets (TAX/ASSETS). The research used for statistical analysis, preliminary data analysis with descriptive statistics as well as hypotheses were tested by multiple regression analysis
          From the research results, it was found that profitability (ROA) has a positive influence on corporate income tax planning measured by ETR and has a positive effect tax planning measured by TAX/ASSETS. Inventory management for average inventory period (AIP) has a negative influence on effective corporate income tax (ETR) planning, and while it has a significant positive influence on tax planning measured by TAX/ASSETS. The operating efficiency for total asset turnover (TAT) had a significant positive influence on tax planning measured by TAX/ASSETS.