KEPUTUSAN HARGA TRANSFER: PERAN TUNNELING INCENTIVE DAN MINIMASI PAJAK

Abstract

Transfer price is a transaction for determining the selling price of a service, intangible assets, and goods to parties who have a special relationship which opens up opportunities for abuse of power by management and controlling shareholders. This study aims to examine the effect of tunneling incentives and tax minimization, which are thought to motivate management in deciding transfer prices. With the purposive sampling method, a total of 58 non-BUMN manufacturing companies listed on the Indonesia Stock Exchange were obtained in 2018. The test results with multivariate regression showed that tunneling incentives had no effect on transfer pricing. However, tax minimization by management has a negative effect on transfer pricing. This results indicate that the determination of transfer prices is more motivated by management's expectations in order to minimize taxes in the next period.