TRANSFER PRICING PRACTICES: STUDY IN MANUFACTURING COMPANIES IN INDONESIA

Abstract

This research aims to test whether there is an influence between taxation, bonus mechanism, profitability, tunneling incentive on transfer pricing. The data used in this research is secondary data. This type of research is quantitative. In this study, secondary data were obtained from the Indonesia Stock Exchange website through the site http://www.idx.co.id in the form of financial reports of manufacturing companies that have gone public and have been audited from 2018 to 2020. The population in this study are manufacturing companies listed on the IDX (Indonesia Stock Exchange) from 2018 to 2020. While the number of sample companies listed was 59 companies with an observation time span of three years, so that the sample used in this study amounted to 147 companies. The research criteria used the purposive sampling method. This research uses the technique of multiple linear regression analysis. The results of this research show that based on the results of the analysis conducted in this study, it can be concluded that taxes, bonus mechanisms and tunneling incentives affect transfer pricing. Meanwhile, profitability has no effect on transfer pricing.