Tax Aggressive Behavior in Islamic Banking in Indonesia: A Descriptive Study

Abstract

This study aims to explore the tax aggressiveness behavior of Islamic banking in Indonesia during the period 2019-2023. Through a descriptive approach, this study examines various factors that influence this behavior, including bank size, profitability, and applicable tax policies. Data were analyzed using descriptive statistical methods to describe the level of tax aggressiveness as measured by the Effective Tax Rate (ETR) and other indicators.
The results of the study indicate that Islamic banks in Indonesia tend to show controlled tax aggressiveness behavior, with variations in the level of aggressiveness between banks influenced by individual bank characteristics and economic conditions. Although there are indications of aggressive tax planning strategies, these banks still comply with Sharia principles and applicable tax regulations.
This study contributes to further understanding of tax behavior in the Islamic banking sector, as well as its implications for regulators, policy makers, and bank management in managing tax obligations. In addition, these findings can also be a reference for further research on taxation in the Islamic financial industry.