This research objective is to examines the development of transfer pricing issue in Indonesia and to be a guide for further research in transfer pricing issue. This research is used qualitative method which reviewed 15 previous scientific research paper in the span of 2004-2020. In the era of globalization encourages entreprenuers to open up a business opportunities in various countries. The different of tax policies may give advantage to practice transfer pricing issue. So, the transfer pricing knowledge is become a challenging of every entreprenuers which need to study more deeply about the principle of fairness of arm's length principle. The result of this research is showed the application of advance pricing agreement (APA) is a pretty good thing for tax authorities to pay attention for. It is hoped that APA will be a solution in solving the problem of abuse practice of transfer pricing. It can increase the potential for state revenue and minimize the abuse practice of transfer pricing in Indonsia. Further research can be recommended to conduct research on the application of APA because this is still new in Indonesia.

This study has collected several previous researches on the topic of tax avoidance and concluded that the audit committee has a positive impact on tax avoidance so that the larger the number of audit committees, the more likely it is to reduce tax avoidance in Indonesia. Furthermore, executive compensation, executive character, firm size, proportion of institutional ownership and board of directors commissioners and audit quality are not proven to affect the reduction of tax avoidance in Indonesia but have an effect in other countries. Companies that take tax avoidance actions are actually not just a coincidence, because all actions and decisions in tax avoidance are policies decided by the company itself. Exclusively, the parties who make a company decision are the tax director and the company's tax consultant. However, the main director or president director who has the duty to lead the company directly or indirectly has influence in everything related to company decisions, especially the decision to take tax avoidance actions.