The Effect of Tax Minimization and Leverage on Transfer Pricing Decisions With GCG as Moderation

Profit is the main orientation for every business entity because profit is one of the company's performance indicators in order to maintain its sustainability, therefore various strategies are designed and implemented so that the company continues to exist and is able to compete along with increasingly competitive and massive developments. Transfer pricing is a strategy that is oftenimplemented by companies in order to manage resources while achieving profit optimization and as a strategy is certainly influenced by several determinants including Tax minimization, leverage and Good Corporate Governance. This study intends to examine the effect of tax minimization and leverage through the interaction of Good Corporate Governance which is proxied by the number of audit committees with educational backgrounds and accounting experience. The population used are all entities in the industrial sector listed on the Indonesia Stock Exchange, using purposive sampling obtained from 17 selected companies with the observation period 2019 –2021 so that a total sample data of 51 is obtained. Moderating Regression Analysis (MRA) is used as a technique to examine the relationship between variables. The test results show that partially Tax minimization, leverage, and Good Corporate Governance have a significant effect on transfer pricing. The test results also show that GCG is able to moderate both tax minimization and leverage on transfer pricing