TAX MINIMIZATION MODERATING DETERMINANT TRANSFER PRICING IN ENERGY SECTOR COMPANIES INDONESIA
Main Article Content
Rizky Dwi Kemal
Siska Aura Kustiyani
Rahayu Nur Cahyani
Mohamad Zulman Hakim
Hesty Erviani Zulaecha
Dewi Rachmania
The objective of this study is to examine and compare the various factors that influence transfer pricing decisions, with a particular emphasis on bonus schemes and loan contracts. It further explores the impact of tax reduction strategies on these factors within energy sector firms listed on the Indonesia Stock Exchange (IDX) between 2017 and 2023. The study's sample, consisting of 83 energy sector companies listed on the IDX, was selected using purposive sampling. Based on specific criteria, 49 data points and 7 energy-related firms were chosen as representatives for the analysis. The primary analytical technique applied in this study is moderated regression analysis. The findings indicate that transfer pricing strategies are significantly influenced by loan agreements and compensation schemes. However, tunneling incentives appear to have no substantial impact on transfer pricing decisions. Additionally, the moderating effect of tax minimization strengthens the relationship between loan agreements and transfer pricing. On the other hand, tax minimization seems to have minimal effect on the connection between transfer pricing, bonus plans, and tunneling incentives.
Ayem, S., & Ningsih, R. (2021). Tax minimization as a moderator on the indication of transfer pricing practices that are influenced by the bonus mechanism and debt convention. Taxation Accounting Media, 6(2), Article 2. https://doi.org/10.52447/map.v6i2.5127
Azzuhriyyah, A. A., & Kurnia, K. (2023). The Effect of Tunneling Incentives, Intangible Assets, and Tunn on Transfer Pricing Decisions with Tax Minimization as a Moderation Variable. EKOMBIS REVIEW: Scientific Journal of Economics and Business, 11(1), 63–72.
Basuki, A. T. (2021). Panel Data Analysis in Economic and Business Research. PT Rajagrafindo Persada, 160. https://scholar.google.com
Darmawati, A., & Muslichah, M. (2022). Bonus mechanism, Company Size, and Tunneling Incentive Against Transfer pricing. AFRE (Accounting and Financial Review), 5(3), 233–239.
Denny, D., Haryadi, D., & Suanti, S. (2024). Analysis of the Influence of Tax Burden, Profitability, Bonus Mechanism and Exchange Rate on Transfer Pricing in Raw Goods Sector Companies on the Indonesia Stock Exchange. Journal of Revenue: Scientific Journal of Accounting, 5(1), 43–52.
Devi, D. K., & Suryarini, T. (2020). The Effect of Tax Minimization and Exchange Rate on Transfer pricing Decisions with Leverage as Moderating. Accounting Analysis Journal, 9(2), Article 2. https://doi.org/10.15294/aaj.v9i2.36469
Indonesia Stock Exchange (IDX). (2024). Financial Statements & Annual Report. Retrieved from idx.co.id: https://www.idx.co.id/
Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4), 305–360. https://doi.org/10.1016/0304-405X(76)90026-X
Mardiana, E., & Badjuri, A. (2023). Determinants of Transfer Pricing through Tax Minimization as a Moderator. Owner: Accounting Research and Journal, 7(4), 3365–3374.
Pondrinal, M., & Sari, Y. P. (2023). Company Size, Leverage, Bonus mechanism and Tax Planning on Transfer pricing With Profitabilias as Moderating Variables. Journal of Tax and Business, 4(1), 160–170.
Prapanca, D. (2024). The Impact of Taxes, Tunneling Incentives, and Debt Covenants on Transfer pricing. Jambura Journal of Educational Management, 461–475.
Priyanti, D. W., & Suryarini, T. (2021). How do Trading, Service, and Investment Sector Companies Make Transfer Pricing Decisions? JASF, 4(1), 1–12.
Rahmawati, S. A., & Machdar, N. M. (2024). The Effect of Debt Covenant, Tunneling Incentive and Thin Capitalization on Transfer Pricing with Tax Minimization Moderation. Profit: Journal of Management, Business and Accounting, 3(1), Article 1. https://doi.org/10.58192/profit.v3i1.1664
Rossa, E., Cahyani, A. D., Fathoni, A. H., Dinanti, D., Saputri, D., Putra, D. R., & Erickson, D. (2024). The Effect of Tax Planning on Transfer Pricing Decisions in Multinational Companies. Accounting, 3(1), Article 1. https://doi.org/10.55606/akuntansi.v3i1.1488
Sebele, F., & Wealth, E. (2022). The Arm's Length Principle: A Panacea or Problem to Regulating Transfer Pricing Transactions by Mnes in Developing Countries. Eurasian Journal of Business and Management, 10, 137–152. https://doi.org/10.15604/ejbm.2022.10.02.004
Watts, R. L., & Zimmerman, J. L. (1990). Positive Accounting Theory: A Ten Year Perspective. The Accounting Review, 65(1), 131–156.
