Transfer Pricing: Tax Haven and Tunneling Incentive Moderated by Tax Minimizations (Case Study on Manufacturing Companies Listed on the Indonesia Stock Exchange (IDX) in 2013-2023) Suyanto*, Fuadhillah Kirana Putri, Yhoga Heru Pratama, Nurul Hayati Ayu Mulyani, Putri Nia Safitri, Gustana Amelia
Faculty of Economy, Sarjanawiyata Tamansiswa University
Jl. Kusumanegara No. 157 Umbulharjo Yogyakarta
*iyant[at]ustjogja.ac.id
Abstract
This study aims to investigate the influence of tax haven and incentive tunneling on transfer pricing with tax minimization as moderating variable. The population of this study consists of manufacture sector companies listed on the Indonesia Stock Exchange (BEI) from 2013 to 2023. The sample was selected using purposive sampling, with a total of 264 data proceed. The data analysis method includes Chow test, Hausman test, and Moderate Regression Analysis (MRA). The study indicates that both tax haven and tunneling incentive have positive influence on transfer pricing. The moderating variable tax minimization can strengthen the positive influence of tax haven on transfer pricing. The moderating variable tax minimization also can strengthen the positive influence of tunneling incentive on transfer pricing. The study has implication for the multinational company to optimize tax liabilities through efficient transfer pricing practices especially tunneling incentive. This study also has implication for the government in formulating better policies to address tax avoidance and unfair transfer pricing practices.
Keywords: Tax Haven, Tunneling Incentive, Tax Minimization, Transfer Pricing
