scholarly journals THE EFFECT OF TAX MINIMIZATION, BONUS MECHANISM, FOREIGN OWNERSHIP, EXCHANGE RATE, AUDIT QUALITY ON TRANSFER PRICING DECISIONS

2021 ◽  
Vol 5 (1) ◽  
pp. 57-72
Author(s):  
Marfuah Marfuah ◽  
Sanintya Mayantya ◽  
Priyono Puji Prasetyo
Keyword(s):  
Exchange Rate ◽  
Audit Quality ◽  
Stock Exchange ◽  
Transfer Pricing ◽  
Foreign Ownership ◽  
Manufacturing Companies ◽  
Pricing Decisions ◽  
Pricing Decision ◽  
Negative Effect ◽  
The Government

Abstract The purpose of this study was to determine the effect of tax minimization, bonus mechanisms, foreign ownership, exchange rates, and audit quality on transfer pricing in manufacturing companies in Indonesia. The population of this research was all manufacturing companies listed on the Indonesia Stock Exchange from 2017 to 2019. By using the purposive sampling method, 81 companies were selected as the research sample. Based on logistic regression analysis, it was proven that the tax minimization variable has a significant positive effect on transfer pricing decisions. Likewise, the audit quality variable is proven to have a significant negative effect on transfer pricing decisions in manufacturing companies in Indonesia. Meanwhile, the bonus mechanism, foreign ownership, and exchange rate variables were not proven to have a significant effect on the company's transfer pricing decision. These results indicated that the greater the tax minimization carried out by the company and the lower the audit quality will increase the probability of the company in conducting transfer pricing, and vice versa. The results of this study have implications for encouraging the government to make regulations that can prevent transfer pricing practices between companies that have a special relationship that might harm the government from tax revenue.  Keywords: bonus mechanism; foreign ownership; tax minimization; transfer pricing

scholarly journals Analisis Keputusan Transfer Pricing Berdasarkan Pajak, Tunneling dan Exchange Rate

2020 ◽  
Vol 20 (2) ◽  
Author(s):  
Hani Sri Mulyani ◽  
Endah Prihartini ◽  
Dadang Sudirno
Keyword(s):  
Exchange Rate ◽  
Exchange Rates ◽  
Stock Exchange ◽  
Transfer Pricing ◽  
Tax Burden ◽  
Manufacturing Companies ◽  
Pricing Decisions ◽  
Pricing Decision ◽  
The Government ◽  
Positive Effect

Tax has two points of view, for the government tax is a source of state revenue that has the largest contribution, but for tax companies is a burden that must be paid. Often companies do tax planning strategies so that the tax burden that must be borne by the company becomes smaller. Companies usually exploit loopholes from the use of accounting methods allowed by accounting and taxation rules. Transfer Pricing is one of the ways companies take to reduce the tax burden. This study aims to determine and obtain empirical evidence about the effect of tax, tunneling and exchange rates on transfer pricing decisions both partially and simultaneously on manufacturing companies listed on the Indonesia Stock Exchange (IDX) for the 2013-2017 period. The research method used is descriptive and verification analysis method. The population in this study were 144 manufacturing companies listed on the Indonesia Stock Exchange in the period 2013-2017. Sampling using a purposive sampling method and obtained a sample of 20 companies. The results of this study indicate that partially significant positive effect on transfer pricing decisions, tunneling does not significantly influence the transfer pricing and exchange rate decisions do not significantly influence the transfer pricing decision, but simultaneously the results of this study indicate that taxes, tunneling and exchange rates affect significant to the transfer pricing decision.

scholarly journals Determinants of transfer pricing decision at manufacturing companies of Indonesia

2021 ◽  
Vol 10 (3) ◽  
pp. 289-302
Author(s):  
Supriyati Supriyati ◽  
Dewi Murdiawti ◽  
Kadek Pranetha Prananjaya
Keyword(s):  
Audit Quality ◽  
Transfer Pricing ◽  
Hypothesis Test ◽  
Tax Avoidance ◽  
Foreign Ownership ◽  
Company Size ◽  
Manufacturing Companies ◽  
Pricing Decisions ◽  
Pricing Decision ◽  
Debt Covenant

This paper examines the effect of tax avoidance, bonus mechanism, debt covenant, tunneling incentive, audit quality, multinationality, foreign ownership, and company size on transfer pricing. This research population is all manufacturing companies that list at Indonesia Stock Exchange on the period of 2016-2018 but the collected data are on a period of 2015-2019. The sampling technique uses a purposive method to obtain 275 samples in the observation period of 2016-2018. The method of this research involves descriptive statistic test, classical assumption test, and hypothesis test. A regression test is used for testing the hypotheses. The result of the research shows that tax avoidance, debt covenant, and company size have a significant effect on transfer pricing decision. The factors are multinationality, foreign ownership and audit quality also have a significant effect on transfer pricing decisions. Meanwhile, bonus mechanism and tunneling incentives do not significantly affect transfer pricing decisions. Conclusions from this research is a lot of factors involved in the transfer pricing decision. One from inside the company and the others from an outside company. Transfer pricing is a tool to achieve certain goals. The purpose of transfer pricing can be categorized as internal goals and external goals. The manufacturing companies when deciding about transfer pricing must be careful because there are two perceptive about transfer pricing. One perceptive from a business that transfer pricing is something useful because a company can save money related tax but the other perceptive from the government side, transfer pricing has believed to be able to have reduced or even disappearing potential for a country’s tax revenue.

scholarly journals SOME FACTORS THAT AFFECT TRANSFER PRICING DECISION

2018 ◽  
Vol 3 (1) ◽  
pp. 21
Author(s):  
Resa Pide Pratama Septiyani ◽  
Wita Ramadhanti ◽  
Yudha Aryo Sudibyo
Keyword(s):  
Exchange Rate ◽  
Firm Size ◽  
Sampling Method ◽  
Stock Exchange ◽  
Transfer Pricing ◽  
Foreign Ownership ◽  
Pricing Decision ◽  
Binary Regression Analysis ◽  
Affect Transfer ◽  
Positive Effect

The objectives of this research is to analyze the effect of tax minimization, firm size, foreign ownership bonus mechanism, and exchange rate on transfer pricing decision in multinational company engaged in manufacturing that listed on Indonesia Stock Exchange from the year of 2015 to 2016. Sampling method in this study is using purposive sampling using 8 criterias that have been determined. The result of binary regression analysis shows that only tax minimization that has positive effect on transfer pricing decision. While the others variable which are, firm size, foreign ownership, bonus mechanism, and exchange rate do not has an effect on transfer pricing decision.

scholarly journals TRANSFER PRICING DECISIONS AT MULTINATIONAL COMPANIES IN INDONESIA: TAX EXPENSES, FOREIGN OWNERSHIP, INTANGIBLE ASSETS

2020 ◽  
Vol 6 (2) ◽  
pp. 46
Author(s):  
Anggun Budi Utami S Depari ◽  
Reza Ramadhan ◽  
Amrie Firmansyah
Keyword(s):  
Quantitative Methods ◽  
Intangible Assets ◽  
Stock Exchange ◽  
Transfer Pricing ◽  
Secondary Data ◽  
Sampling Technique ◽  
Foreign Ownership ◽  
Manufacturing Companies ◽  
Pricing Decisions ◽  
Final Sample

<p>This study aims to examine the effect of tax expenses, foreign ownership on transfer pricing decisions. This study employs quantitative methods. This study's data type is secondary data from the financial statements of manufacturing companies listed on the Indonesia Stock Exchange (IDX) from 2017 to 2019. Data were obtained from the Indonesia Stock Exchange's official website at http: //www.idx.co.id. Sampling was conducted by purposive sampling technique with a final sample of 30 observations. Hypothesis testing is done by multiple regression analysis with panel data. This study concludes that tax expenses and intangible assets are positively associated with transfer pricing decisions, while foreign ownership is not associated with transfer pricing decisions. This study indicates that Indonesia's Tax Authority needs to exercise tighter supervision on MNCs with intangible assets.</p>

scholarly journals INFLUENCE OF TAXES, EXCHANGE RATE, PROFITABILITY, AND TUNNELING INCENTIVE ON COMPANY DECISIONS OF TRANSFERRING PRICING

2019 ◽  
Vol 2 (1) ◽  
pp. 123
Author(s):  
Citra Syifa Azzura ◽  
Aditya Pratama
Keyword(s):  
Exchange Rate ◽  
Exchange Rates ◽  
Sampling Method ◽  
Transfer Pricing ◽  
Secondary Data ◽  
Financial Statements ◽  
Manufacturing Companies ◽  
Independent Variables ◽  
Pricing Decisions ◽  
Pricing Decision

This study aims to analyze the influence of Taxes, Exchange Rate, Profitability, and Tunneling Incentive on Company Decisions to Make Transfer Pricing in manufacturing companies. The dependent variable in the study is transfer pricing while the independent variables in this study are tax, exchange rate , profitability, and tunneling incentive .The sample was chosen using a purposive sampling method with certain criteria. In accordance with the required data, namely secondary data, this data collection method uses documentation techniques based on the 2013-2017 financial statements. So that a sample of 17 manufacturing companies can be obtained.The results of the analysis of this study indicate that taxes affect the transfer pricing decision. Exchange rates and profitability have no effect on transfer pricing decisions. While the tunneling incentive affects the transfer pricing decision .

scholarly journals The Effect of Tax Minimization and Exchange Rate on Transfer Pricing Decisions with Leverage as Moderating

2020 ◽  
Vol 9 (2) ◽  
pp. 110-115
Author(s):  
Diah Kumala Devi ◽  
Trisni Suryarini
Keyword(s):  
Regression Analysis ◽  
Exchange Rate ◽  
Empirical Evidence ◽  
Stock Exchange ◽  
Transfer Pricing ◽  
Sampling Technique ◽  
Descriptive Statistics ◽  
Pricing Decisions ◽  
Mining Companies ◽  
Pricing Decision

The aims of this research are to analyze and to find empirical evidence about the effect of tax minimization and exchange rate on company decision of transfer pricing with leverage as moderating variable. The population of this research was mining companies which listed in Indonesia Stock Exchange (IDX) over the period 2013 to 2018 from 45 companies. The sampling technique used purposive sampling. Eighteen companies were selected with 65 units analysis were obtained. In addition, data was analyzed using descriptive statistics and inferential statistics using Moderated Regression Analysis (MRA). The data was processed by IBM SPSS Statistics 21 software. The results show that tax minimization and exchange rate have positive and significant effect on transfer pricing. Leverage does not moderate the effect of tax minimization on transfer pricing but leverage significantly moderate the effect of exchange rate on transfer pricing. The conclusion of this research is transfer pricing decision will be higher when tax minimization and exchange rate be higher, but leverage can moderate the effect of exchange rate to transfer pricing.

scholarly journals TAX, DEBT COVENANT AND EXCHANGE RATE (ANALISIS ATAS FENOMENA TRANSFER PRICING)

2020 ◽  
Vol 5 (1) ◽  
pp. 26
Author(s):  
Rina Tjandrakirana ◽  
Erma Diani
Keyword(s):  
Exchange Rate ◽  
Stock Exchange ◽  
Transfer Pricing ◽  
Manufacturing Companies ◽  
Significant Negative Effect ◽  
Analysis Technique ◽  
Negative Effect ◽  
Debt Covenant ◽  
The Exchange Rate ◽  
Quantitative Descriptive

This research was conducted because of the research gap between previous studies. The purpose of this study was to determine the effect of taxes, debt covenants and exchange rates on the company's decision to transfer pricing. This research was conducted on all manufacturing companies listed on the Indonesia Stock Exchange (IDX). The analysis technique used is quantitative descriptive analysis.The results of this study are that tax does not affect the company's decision to apply transfer pricing. This shows that the existence of a large tax burden will not make the company decide to implement transfer pricing. Debt covenant has a significant negative effect on the company's decision to apply transfer pricing, which shows that the lower debt to equity ratio (DER) will make the company decide to implement transfer pricing.While the exchange rate has a significant negative effect on the company's decision to implement transfer pricing. These results indicate that the lower the exchange rate will make the company decide to implement transfer pricing

scholarly journals THE EFFECT OF TAX AVOIDATION, EXCHANGE RATE, PROFITABILITY, LEVERAGE, TUNNELING INCENTIVE AND INTANGIBLE ASSETS ON THE DECISION TO TRANSFER PRICING

2021 ◽  
Vol 2 (02) ◽  
Author(s):  
Nisa Apriani ◽  
Trisandi Eka Putri ◽  
Indah Umiyati
Keyword(s):  
Exchange Rate ◽  
Intangible Assets ◽  
Stock Exchange ◽  
Transfer Pricing ◽  
Tax Avoidance ◽  
Secondary Data ◽  
Annual Reports ◽  
Manufacturing Companies ◽  
Financial Reports ◽  
Pricing Decisions

This study aims to analyze the effect of tax avoidance, exchange rate, profitability, leverage, tunneling incentives and intangible assets on transfer pricing decisions. The dependent variable in this study is transfer pricing which is proxied by the value of the related party transaction (RPT) of sales. The independent variables in this study are tax avoidance, exchange rate, profitability, leverage, tunneling incentives and intangible assets. This study uses secondary data on financial reports or annual reports that have been published by companies on the Indonesia Stock Exchange. The population in this study is manufacturing companies listed on the Indonesia Stock Exchange in the 2014-2018 period. By using purposive sampling method, the total overall sample in this study is 70 financial statements from 14 companies. The analytical method used uses logistic regression analysis. The results of the analysis in this study indicate that the exchange rate, profitability, leverage, and intangible assets have a positive effect on the company's transfer pricing decision. While tax avoidance and tunneling incentives negatively affect company transfer pricing decisions.

scholarly journals PENGARUH PAJAK, KEPEMILIKAN ASING, BONUS PLAN DAN UKURAN PERUSAHAAN TERHADAP PERUSAHAAN MELAKUKAN TRANSFER PRICING (Studi Empiris pada Perusahaan Manufaktur yang Terdaftar di BEI Tahun 2014-2018)

2021 ◽  
Vol 5 (1) ◽  
pp. 47
Author(s):  
Dyah Detari Prabaningrum ◽  
Titiek Puji Astuti ◽  
Yunus Harjito
Keyword(s):  
Stock Exchange ◽  
Manufacturing Sector ◽  
Transfer Pricing ◽  
Foreign Ownership ◽  
Company Size ◽  
Manufacturing Companies ◽  
Panel Data Regression ◽  
Data Regression ◽  
Bonus Plans ◽  
Bonus Plan

This study aims to test empirically the effect of taxes, foreign ownership, bonus plans and company size on transfer pricing in the manufacturing sector listed on the Indonesia Stock Exchange (BEI) for the 2014-2018 period. Based on the purposive sampling method, 33 companies met the criteria to be sampled in the study from 2014-2018. The number of samples in the study for 5 years with 165 observations. This study uses a panel data regression model. Based on the results of data analysis research, it can be concluded that taxes have a positive effect, while foreign ownership, bonus plans, and company size have no effect on transfer pricing in manufacturing companies listed on the Indonesia Stock Exchange in 2014-2018. Keywords: transfer pricing, tax; foreign ownership, the bonus plan, the size of the company

scholarly journals The Impact of Tax, Exchange Rate, Tunneling Incentive and Firm Size on Transfer Pricing (Empirical Study of Manufacturing Companies Listed on the Indonesian Stock Exchange for Years2014-2018)

2019 ◽  
Vol 1 (2) ◽  
pp. 149-166
Author(s):  
Felicia Vanessa Wijaya ◽  
Luky Patricia Widianingsih
Keyword(s):  
Exchange Rate ◽  
Firm Size ◽  
Stock Exchange ◽  
Transfer Pricing ◽  
Secondary Data ◽  
Annual Reports ◽  
Manufacturing Companies ◽  
Factors Affecting ◽  
Analysis Technique ◽  
The Impact

Abstract: In the era of globalization, companies are developing into multinational companies that establish branches or subsidiaries in various countries. This globalization has given an impact to increase international transaction. These transactions could lead to transactions with related parties that shows an indication of transfer pricing. Along with the development of globalization, factors affecting transfer pricing are not only derived from taxes, but also from other factors. The purpose of this research is to examine the effect of tax, exchange rate, tunneling incentive, and firm size on transfer pricing. This research used secondary data in the form of annual reports published on the Indonesia Stock Exchange. Population of this research was manufacturing companies for years 2014-2018 and by purposive sampling method, a sample of 19 manufacturing companies was obtained. Analysis technique used on this research was a multiple linear regression using SPSS 23 application. The result shows that tax, tunneling incentive, firm size have significant effect on transfer pricing, while exchange rate does not take any effect on transfer pricing. Adjusted R2 determination coefficient of 32,8% shows transfer pricing is affected by tax, exchange rate, tunneling incentive, and firm size, while remaining 67,2% is affected by other variables outside research model. Keywords: Transfer Pricing; Tax; Exchange Rate; Tunneling Incentive; Firm Size.

Sign in / Sign up

Export Citation Format

Share Document