Profitability And Operational Costs In Retail Trade: Pre- And Post-Tax Rate Changes

The corporate tax rate has undergone changes. This study examines differences in profitability and operational costs before and after changes in the corporate tax rate, aiming to enhance the tax ratio. Using secondary data from the financial statements of retail trade sector companies listed on the IDX for 2016-2023, profitability is measured by the NPM ratio, while operational costs are assessed through expense components. Employing a sequential mixed-method approach with an explanatory strategy, the study utilizes a paired sample t-test to identify significant differences before and after the tax rate change. The results show: 1. A significant difference in profitability before and after the tax rate change, 2. A significant difference in operational costs before and after the tax rate change, and 3. That corporate tax rate changes can improve company performance and the tax ratio.