This study aims to analyze how fiscal incentive provided by the government to initiate investment will affect company’s earning management. The fiscal incentive used in this study is the corporate tax rate reduction for listed companies based on Government Regulation (GR) No. 81/2007 and GR No. 77/2013. The unbalanced panel data collected consists of 346 listed companies in the period of 2008-2014 excluding companies from financial and mining sectors. Multivariate regression results show that there is no evidence that the tax rate reduction has any impact on company’s earning management.