TAX PLANNING IMPLEMENTATION IN PURCHASES OF FIXED ASSETS DECISION (CASE STUDY OF HMS SURABAYA, INDONESIA)

Revenue growth followed by income tax growth makes many companies doing tax planning in order to minimize tax payments. Tax planning is a legal method because it is still guided by the provisions of taxation. In this study, tax planning will be carried out using the leasing method. The company used in this case study is HMS which operating in hospitality sector. HMS plans to add three fixed assets, namely the Kijang Innova car, the Hi Ace Commuter car, and a chiller. HMS needs to do tax planning so that the income tax can be optimal. It is necessary to do an analysis in the selection of alternative purchase of fixed assets by cash, bank credit, or leasing. The puRpose of this study are to determine the most profitable alternative for purchasing fixed assets in saving income tax. The method used in this research is qualitative method. The results of this study are alternative leasing can result in tax savings on two fixed assets, where it shows that tax savings do not always come from the use of alternative leasing. Tax savings depend on factors that affect deductible expenses.