UPAYA MEMINIMALISIR TRANSFER PRICING PADA HUKUM PERPAJAKAN INTERNASIONAL

Transfer pricing is a company policy in determining the transfer price of a transaction, be it goods, services, intangible assets, or financial transactions carried out by the company to its subsidiaries. The practice of transfer pricing is basically a natural and normal thing in business. However, transfer pricing becomes connotative because it is usually related to tax avoidance practices. Efforts to minimize transfer pricing fraud in Indonesia are sourced from Article 18 of the Income Tax Law which states that the Director General of Taxes is authorized to re-determine the amount of income and deductions for a taxpayer in connection with transactions conducted with parties that have special relationships based on the principles of fairness and business practice, namely if the transaction is carried out with independent parties. The principle that must be considered by the fiscal authority to obtain a strong justification for the tax correction on the alleged transfer pricing, namely, affiliation (associated enterprise) or special relationship (special relationship). The approach method is normative juridical based on statutory regulations as a guideline or norm.