Factor Supporting Companies Performing Transfer Pricing

Nurjannah, Nurjannah

doi:10.24912/ja.v26i1.818

Cited by 3 publications

(3 citation statements)

References 22 publications

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“…Instead, managers seek accurate performance outcomes that can be evaluated through financial reports reflecting actual circumstances. That enables the information to be effectively utilized in decision-making processes (Nurjannah et al, 2022). The findings of this study align with the research conducted by Baroroh et al (2021) The significance value of tax minimization (TM) is 0.128, greater than the alpha value of 0.05.…”

Section: Resultssupporting

confidence: 81%

“…Transfer pricing is implemented not due to the majority shareholder's influence but because management is motivated to exploit the benefits, or the transfer pricing decisions made are typical business decisions aimed at minimizing costs and benefiting all parties involved (Riyadi & Kresnawati, 2021). The findings of this study align with the research conducted by Abbas & Eksandy (2020), Devita & Sholikhah (2021), Jayanti & Kusumawati (2023), Komarudin et al (2022); Nurjannah et al (2022); Riyadi & Kresnawati (2021); Saifudin & Putri (2018); Sari et al (2021), all of which indicate that tunneling incentives do not have an impact on transfer pricing.…”

Section: Resultssupporting

confidence: 77%

“…As per the findings of Muliya & Hasibuan (2018), transfer pricing is a method employed to enhance profits, hence impacting the company's income. Company owners distribute bonuses by evaluating performance, which is determined by the company's total generated earnings (Nurjannah et al, 2022).…”

Section: Bonus Mechanism and Transfer Pricingmentioning

confidence: 99%

See 2 more Smart Citations

The Impact of Tunneling Incentive, Bonus Mechanism, Tax Minimization, and Multinationality to Transfer Pricing

Pranatio,

Sutrisno

2024

JMIEB

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Tujuan dari penelitian ini adalah untuk mengetahui pengaruh tunneling incentive, mekanisme bonus, tax minimization, multinationality, leverage dan intangible asset terhadap keputusan transfer pricing pada perusahaan consumer cyclicals dan non-cyclicals yang terdaftar di Bursa Efek Indonesia. Penelitian ini dilakukan karena masih terdapat ketidakkonsistenan pada hasil penelitian sebelumnya dan dilakukan pada periode setelah terjadinya COVID-19 yang menyebabkan adanya beberapa perubahan aturan tarif perpajakan di Indonesia. Populasi dalam penelitian ini adalah seluruh perusahaan dalam sektor consumer cyclicals dan non-cyclicals yang terdaftar di Bursa Efek Indonesia dari tahun 2020 hingga 2022. Sampel penelitian diperoleh menggunakan metode purposive sampling, yang terdiri atas 59 perusahaan yang memenuhi kriteria sampling, dengan jumlah data 236. Pengujian statistik dalam penelitian ini menggunakan metode regresi berganda. Hasil penelitian menunjukkan bahwa multinationality memiliki pengaruh positif terhadap transfer pricing. Namun demikian tunneling incentive, mekanisme bonus, tax minimization, leverage, dan intangible asset tidak berpengaruh terhadap transfer pricing. This study aims to assess the impact of tunneling incentives, bonus mechanisms, tax minimization, multinationality, leverage, and intangible assets on the decision-making process of transfer pricing in consumer cyclical and non-cyclical companies listed on the Indonesian Stock Exchange. This research was conducted to address the contradictions found in prior research results. It was conducted during the post-COVID-19 period, which witnessed various modifications in the tax rate rules in Indonesia. The population for this study comprises all companies in the consumer cyclical and non-cyclical sectors listed on the Indonesia Stock Exchange from 2020 to 2022. The research sample was acquired using purposive sampling, involving 59 companies that satisfy the sampling requirements, resulting in 236 data points. The study employed the multiple regression approach for statistical testing. The research findings indicate that multinationality has a favorable impact on transfer pricing. However, the concepts of tunneling incentive, bonus mechanism, tax minimization, leverage, and intangible assets do not influence transfer pricing.

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Section: Resultssupporting

confidence: 81%

Section: Resultssupporting

confidence: 77%

See 1 more Smart Citation

The Impact of Tunneling Incentive, Bonus Mechanism, Tax Minimization, and Multinationality to Transfer Pricing

Pranatio,

Sutrisno

2024

JMIEB

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Corporate Tax Policy: Impact Tunnelling Incentive, Debt Covenant, And Transfer Pricing

2023

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Transfer pricing is considered one of the corporate policies for minimizing the tax burden. This study aims to analyze the role of transfer pricing in the influence of tunnelling incentives and debt covenants on corporate tax policy. Manufacturing companies listed on the Indonesia Stock Exchange are unit analyses in this study. Their 398-panel data after purposive sampling. Using STATA, this study found that tunnelling incentives are used in transfer pricing activities, while debt covenant and transfer pricing are used in management in tax policies. Meanwhile, debt covenant is not widely used in the transfer pricing scheme, and tunnelling incentive also does not affect management on corporate tax policy. The mediating role of transfer pricing is not found in the indirect effect of tunnelling incentives and debt covenants on corporate tax policy. This result explains that transfer pricing and debt covenants are commonly used by companies in their tax policy.

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Transfer Pricing Decisions: Tax Income, Exchange Rate, Tunneling Incentive and Multinationality

Ismi Raihan Nadhira,

Ardan Gani Asalam

2024

Jurnal Akuntansi

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Transfer pricing can be misapplied by the company by transferring taxable income to subsidiaries and companies with special relationships to significantly push down the tax expense. This research aims to determine factors that can affect transfer pricing decisions. Those factors include tax income, exchange rates, tunnelling incentives, and multinationals. The research object of this research is a company from the consumer non-cyclical sector listed on the Indonesia Stock Exchange (IDX) from 2017 to 2021. The samples are eight companies selected with purposive sampling technique, resulting in 40 observation data. The analysis technique implemented in this research is panel data regression tested Eviews12. This research reveals that tax income and tunnelling incentives negatively influence transfer pricing decisions. At the same time, the exchange rate and multi-nationality do not affect transfer pricing decisions. Variable tax income, exchange rate, tunnelling incentives, and multinationals have simultaneously affected transfer pricing decisions.

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Factor Supporting Companies Performing Transfer Pricing

Cited by 3 publications

References 22 publications

The Impact of Tunneling Incentive, Bonus Mechanism, Tax Minimization, and Multinationality to Transfer Pricing

The Impact of Tunneling Incentive, Bonus Mechanism, Tax Minimization, and Multinationality to Transfer Pricing

Corporate Tax Policy: Impact Tunnelling Incentive, Debt Covenant, And Transfer Pricing

Transfer Pricing Decisions: Tax Income, Exchange Rate, Tunneling Incentive and Multinationality

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