ABSTRACT : –This study examines the effect of profitability, leverage, capital intensity ratio, and financial distress on tax avoidance in manufacturing companies in Indonesia, as well as the moderating role of managerial ownership. Panel data from 75 companies were analyzed using panel regression using STATA. The results show that profitability and capital intensity ratio increases current ETR, reducing tax avoidance. At the same time, leverage, financial distress, and managerial ownership decrease current ETR, increasing tax avoidance. Managerial ownership strengthens the effect of profitability and capital intensity in suppressing tax avoidance and the effect of financial distress in increasing tax avoidance. However, it weakens the effect of leverage on tax avoidance. The study’s implications emphasize the importance of managerial ownership as an internal control that can strengthen or weaken tax avoidance depending on the company’s financial condition. These findings provide insight for regulators and management in designing tax policies and corporate governance. This study also provides new contributions using the latest panel data and managerial ownership moderation analysis. It opens up opportunities for further research to include non-financial variables and other industrial sectors to enrich the understanding of the factors that influence tax avoidance.

KEYWORDS – Tax avoidance, Managerial ownership, Capital intensity, Financial distress