The Effect of Profitability, Firm Size and Leverage on Tax Avoidance in Energy Sector Companies Listed on the Indonesia Stock Exchange in 2022–2024

The purpose of this study is to examine how profitability, firm size, and leverage influence tax avoidance practices among energy sector companies listed on the Indonesia Stock Exchange during the period 2022–2024. Tax avoidance in this research is defined as a legal strategy used by companies to minimize tax expense by utilizing gaps within existing regulations. Although permissible, this practice often raises broader ethical questions, particularly regarding its impact on the state’s ability to generate sustainable tax revenue and support public development. This study employs secondary data obtained from published annual financial reports. The sample was determined using a purposive sampling method, ensuring that only companies with complete and consistent data across the three year period were included. A total of 21 companies met the criteria and were analyzed using EViews 12 SV through multiple regression techniques to evaluate the effect of each variable on tax avoidance. The empirical findings show that profitability has a positive effect on tax avoidance, meaning that companies with higher profits tend to take more active steps in reducing their tax burden. Firm size is found to have a negative effect, indicating that larger companies due to higher public visibility and stronger governance structures are generally more cautious and less inclined to engage in tax avoidance. In contrast, leverage demonstrates a positive effect on tax avoidance. This suggests that firms with higher debt levels may experience greater financial pressure, encouraging them to utilize both interest-related tax benefits and additional tax planning strategies to minimize their tax obligations