ANALYSIS OF TUNNELING INCENTIVE, BONUS MECHANISM, TAX MINIMIZATION AND MULTINATIONALITY ON TRANSFER PRICING IN THE ERA OF CHANGING TAX RATES

Abstract

The aim of this research is to determine the influence of tunneling incentives, bonus mechanisms, tax minimization, multinationality, leverage and intangible assets on transfer pricing decisions in consumer cyclical and non-cyclical companies listed on the Indonesia Stock Exchange. This research was carried out because there were still inconsistencies in the results of previous research and was carried out in the period after the onset of COVID-19 which caused several changes to the tax rate rules in Indonesia. The population in this research is all companies in the consumer cyclicals and non-cyclicals sectors listed on the Indonesia Stock Exchange from 2020 to 2022. The research sample was obtained using a purposive sampling method, consisting of 59 companies that met the sampling criteria, with a total of 236 data. Statistical testing in this research uses the multiple regression method. The research results show that multinationality has a positive influence on transfer pricing. However, tunneling incentives, bonus mechanisms, tax minimization, leverage and intangible assets have no effect on transfer pricing.