The Effect of Transfer Pricing, Sales Growth, Thin Capitalization on Tax Avoidance Moderated by Size

Abstract

This study provides analytical and experimental validation of the main functions and characteristics, focu sing on the impact of transfer pricing, sales growth, and thin capitalization on tax avoidance, with company size as a moderating variabl e. This study is very relevant in the context of mining companies. This study uses a quantitative approach by utilizing secondary data, specifically examining mining companies listed on the Indonesia Stock Exchange (IDX) from 2021 to 2023. To select the sample, this study uses a purposive sampling technique, resulting in a final sample of 60 mining companies for the specif ied period. Hypothesis testing and data analysis were carried out using multiple linear regression and moderated regression analysis (MRA), supported by SPSS version 22. The results of the study indicate that transfer pricing and thin capitalization do not affect tax avoidance, while sales growth has a significant impact. In addition, company size does not function as a moderating factor for the relationship between transfer pricing and sales growth on tax avoidance. Meanwhile, company size functions as a m oderating factor for the relationship between thin capitalization and tax avoidance.