The Effect of Income Tax, Tunneling, Incentive, and Bonus Mechanism on Transfer Pricing Decisions with Profitability as a Moderation Variable in Manufacturing Companies Listed on the IDX

Abstract

This study analyzes the effect of Income Tax, Tunneling Incentives, and Bonus Mechanisms with Profitability as a Moderating variable on Transfer Pricing decisions in manufacturing companies listed on the Indonesia Stock Exchange in 2016-2020. The population in this study amounted to 182 companies. The sampling method used in this study was purposive and obtained 46 sample companies which became the object of research. This type of research is descriptive quantitative with classical assumption testing and Multiple Regression Analysis (MRA) tests which use two regression equations. The analysis results show that Income Tax has a significant negative effect on Transfer Pricing decisions, Tunneling Incentive has a significant negative effect on Transfer Pricing decisions, Bonus Mechanism has a significant negative effect on Transfer Pricing decisions, and Profitability cannot moderate the effect of Income Tax on Transfer Pricing, Profitability cannot moderate the effect of Tunneling Incentive on Transfer Pricing, and Profitability cannot moderate the effect of Bonus Mechanism on Transfer Pricing. Keywords: Income Tax, Tunneling Incentive, Bonus Mechanism, Profitability, and Transfer Pricing.