Published: 2025-10-01
Tax Planning Strategies and Their Economic Impact on Corporate Financial Performance
DOI: 10.35870/jemsi.v11i5.4563
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Abstract
Tax planning refers to a set of strategies and decisions undertaken by a company to reduce its tax burden through legal means. These strategies may include the optimization of tax deductions and the selection of tax-efficient organizational structures. The objective of this study is to analyze tax planning strategies and their impact on corporate financial performance. This research employs a qualitative approach using a literature review method. The literature review method is used to synthesize relevant theoretical frameworks, empirical findings, and recent developments in the field of tax planning and its implications for corporate financial performance. This review has examined the role of tax planning strategies in shaping corporate financial performance. The findings indicate that effective tax planning can significantly enhance a company’s financial outcomes by reducing tax liabilities, optimizing resource allocation, and increasing after-tax profitability. Strategic tax decisions such as income shifting, utilization of tax incentives, and transfer pricing mechanisms have been shown to positively correlate with improved return on assets (ROA), net income, and shareholder value provided they are implemented within legal and ethical boundaries.
Keywords
Tax ; Strategi ; Finance ; Performance
Article Information
This article has been peer-reviewed and published in the JEMSI (Jurnal Ekonomi, Manajemen, dan Akuntansi). The content is available under the terms of the Creative Commons Attribution 4.0 International License.
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Issue: Vol. 11 No. 5 (2025)
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Section: Articles
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Published: %750 %e, %2025
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License: CC BY 4.0
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Copyright: © 2025 Authors
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DOI: 10.35870/jemsi.v11i5.4563
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Suwandi Ng
Fakultas Ekonomi dan Bisnis, Universitas Atma Jaya Makassar.
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