The Influence of Tunneling Incentive and Bonus Mechanism on Transfer Pricing Determination Moderated by Tax Minimization During the Covid-19 Pandemic (Case Study on A Manufacturing Company Listed on the IDX)

Abstract

This research is a proof-of-concept of important functions and/or characteristics analytically and experimentally. Transfer pricing is a company action that can add potential tax losses to state revenues. The purpose of this study is to analyze the effect of tunneling incentives and bonus mechanisms on transfer pricing during the Covid-19 pandemic. In addition, this study also examines tax minimization as a moderating variable for the effect of tunneling incentives and bonus mechanisms on transfer pricing. The sample used in this research is a manufacturing company listed on the Indonesia Stock Exchange for the 2020-2021 period. This study uses multiple regression analysis and moderate regression analysis with statistical product and service solution version 23. The benefit of this research is to increase the literature related to transfer pricing. Tunneling Incentive, bonus mechanism has no effect on transfer pricing and tax minimization cannot strengthen the influence of Tunneling Incentive, bonus mechanism on transfer pricing.