The Effect of Profitability, Tunneling Incentive, Debt Covenant, and Intangible Assets on Transfer Pricing Decisions with Tax Minimization as Moderating Variables: A Case Study of Manufacturing Companies Listed on the Indonesia Stock Exchange in (2019 – 2

Abstract

The increase of foreign investment in Indonesia in 2020 and 2021 will cause increased reception from side taxation, but the tax justice network reports that Indonesia is still experiencing loss from side tax revenue, a loss caused by corporate tax avoidance by the company multinational through transfer pricing schemes. This research aims to investigate the influence of profitability, tunneling incentives, debt covenants, and intangible assets as indicated factor influence transfer pricing decisions with tax minimization as variable moderation. The research method used is quantitative with the technique of taking samples using purposive sampling; the number of samples was 27 companies out of the 195 population. Research results revealed that profitability, tunneling incentives, and debt covenants positively affect transfer pricing decisions; meanwhile, tax minimization moderates the effect of profitability, tunneling incentives, debt covenants, and intangible assets on transfer pricing decisions.