Foreign Ownership in Tax and Tunneling Incentive Relations - Transfer Pricing: The Case of a Multinational Company on the Indonesia Stock Exchange

Abstract

This study aims to analyze the direct relationship between tax and tunneling incentives with transfer pricing and moderation of foreign ownership in the relationship between tax and tunneling incentives and transfer pricing in multinational manufacturing companies in Indonesia. These results are useful for viewing company behavior in tunneling activities from a different perspective as well as for seeing companies with foreign ownership as vulnerable to transfer pricing and tunneling incentive transactions. The results of the study show that taxes and tunneling incentives simultaneously have an effect on transfer pricing, but partially tunneling incentives have no effect on transfer pricing and taxes have a positive effect on transfer pricing. Foreign ownership is able to moderate the effect of the tax variable on transfer pricing and foreign ownership is unable to moderate the effect of tunneling incentives on transfer pricing.