Tax Planning and Corporate Growth: Evidence from Companies Listed in the SET100 Index of the Stock Exchange of Thailand

Sustainable business development is currently an important matter for companies that want to survive and thrive in a very competitive and unstable world. Yet, the impact of tax planning on the company’s growth and profit, including sales growth, returns on assets, and the sustainable growth rate, is disputable. This study aims to determine the connection between tax planning and sales growth, return on assets, and the sustainable growth rate of the firms listed in the Stock Exchange of Thailand 100 Index. Tax planning will be measured by the effective tax rate, the income tax-to-net operating cash flow ratio, and income tax-to-total assets ratio. The research design used is quantitative. The data were gathered from firms’ financial reports, notes to financial statements, and annual registration statements (Form 56-1 and Form 56-1 One Report) for 2018-2022. Using data of 220 firms for the five years mentioned above, the statistical analysis was done with descriptive statistics, Pearson correlation, and multiple regression analysis. The results of the study revealed that tax planning has a significant impact on firms’ return on assets and sustainable growth rate but not on sales growth. Indeed, the effective tax rate has a significant negative relationship with the firms’ return on assets, while the income tax-to-total assets ratio has a significant positive one and the income tax-to-net operating cash flow ratio has no relationship. Moreover, tax planning has a significant effect on firms’ sustainable growth rate: The effective tax rate has a significant negative relationship with it, the income tax-to-net operating cash flow ratio has a significant positive relationship, and the income tax-to-total assets ratio has the strongest relationship with it. Thus, the study concluded that tax planning is associated with several financial indicators of firms listed in the Stock Exchange of Thailand 100 Index.