The Influence of Tax Planning and Tunneling Incentive on Transfer Pricing Decisions in Multinational Food and Beverage Companies Sub-Sector Listed on IDX from 2010-2018 Period

Abstract

This study aims to explore factors that influence the decision of companies to transfer prices to multinational companies in the food sub-sector with time measurements from 2010-2018. The variables in this study consisted of research variables consisting of Tax Planning and Tunneling Incentive as the independent variable and Transfer Pricing as the dependent variable. The population in this studies all manufacturing companies on the Indonesia Stock Exchange for the period 2010-2018. This study uses secondary data in the form of financial reports obtained from the official website of the Indonesia Stock Exchange, with a total sample of 6 companies taken according to the research criteria determined by the purposive sampling method. The data testing technique is done by using the classical assumption test, multiple regression coefficient test, determination coefficient test, correlation coefficient test, and hypothesis testing. The research results show that: 1) the tax variable has a significant effect on the company's decision to practice transfer pricing; 2) the tunneling incentive variable has a significant effect on the company's decision to practice transfer pricing; 3) Simultaneously, tax and tunneling incentives have a significant effect on Transfer Pricing at the Food and Beverage subsector Multinational companies listed on the Indonesia Stock Exchange from period 2010-2018.