Effect of Tax, Tunneling Incentive, Good Corporate Governance, Profitability, and Bonus Mechanism on Transfer Pricing (Case Studies of Manufacturing Companies Listed on the Indonesia Stock Exchange in 2018- 2020)

ABSTRACT: Transfer Pricing is part of a business and taxation activity that aims to ascertain whether the prices applied in transactions between companies that have special relationships are based on the principle of fair market prices. This study aims to analyze and determine the effect of Taxes, Tunneling Incentives, Good Corporate Governance, Profitability and Bonus Mechanisms on manufacturing companies listed on the Indonesia Stock Exchange in 2018-2020. Data collection technique using purposive sampling technique. A total of 18 companies have met the criteria as a unit of observation. The analytical method used is logistic regression analysis. The research results provide case study evidence that the bonus mechanism influences transfer pricing decisions. Meanwhile, taxes, tunneling incentives, good corporate governance and profitability have no effect on transfer pricing decisions.

KEYWORDS : Transfer Pricing, Tax, Tunneling Incentive, Good Corporate Governance, Profitability, Bonus Mechanism.