Determinants of transfer pricing decisions in Indonesia manufacturing companies

Abstract

T his research aims to investigate tax expenses, tunneling , and bonus on transfer pricing decisions in Indonesia. The practice of transfer pricing as one form of tax avoidance may threaten state revenues. This research is quantitative research with multiple linear regression models with panel data. T he sample s used in this research are manufacturing companies listed on the Indonesia Stock Exchange ( IDX ). The type of data used in this study is secondary data in the form of financial statements of companies listed on IDX from 2011 to 2015. The sample s are selected using a purposive sampling method with the number of samples of 50 companies. The results suggest that tax expenses and tunneling are nega tively associated with transfer pricing decisions while the bonus is not associated with transfer pricing decisions.