Do Intangible Assets, Income Tax, and Debt Agreement Have an Impact on Transfer Pricing Strategy in Multinational Companies?
DOI:
https://doi.org/10.26740/jaj.v16n2.p256-267Keywords:
Intangible Assets, Income Tax, Debt Covenant and Transfer PricingAbstract
Background: Intangible assets afford firms a degree of flexibility in establishing values for tax efficiency, yet they are not without inherent risks, as they are susceptible to manipulation. Prior research has yielded inconclusive results, creating ambiguity regarding the fundamental factors influencing transfer pricing decisions. This study is therefore of great importance, as it aims to provide clarity, reduce the risk of manipulation, and support fair regulations to promote good corporate governance. Objectives: This study employs a comprehensive approach to examine the influence of intangible assets, income tax, and debt covenants on transfer pricing practices within corporate entities. Method: The research employs quantitative methods and focuses on all companies listed on the LQ45 index of the Indonesia Stock Exchange. The data utilized in the study were obtained from secondary sources, and logistic regression was selected as the analytical technique. Results: The findings indicate that intangible assets and income tax have a notable impact on transfer pricing. However, it is important to acknowledge that the results in this domain remain inconclusive. In contrast, debt covenants were found to have no significant effect.
References
Anam, S., Harimulyono, N., Istiqomah, I. W., Pratama, A. S., Wardhana, R., Nur, M., & Ivanda, M. N. M. (2023). Pengaruh Profitabilitas, Nilai Saham, Kebijakan Hutang Terhadap Perataan Laba Pada Perusahaan Yang Go Public Di Bei. CERMIN: Jurnal Penelitian, 7(1), 274–290.
Ardillah, K., & Vanesa, Y. (2022). Corporate Governance Structure, Political Connections, and Transfer Pricing on Tax Aggressiveness. Sriwijaya International Journal of Dynamic Economics and Business, 6(1), 51. https://doi.org/10.29259/sijdeb.v6i1.51-72
Cahyani, A. P., & Oktaviani, R. M. (2023). PENGARUH PAJAK , INTANGIBLE ASSETS , DAN MEKANISME BONUS. Jurnal Riset Terapan Akuntansi, 7(1), 123–132.
Chen, X., Hu, N., Wang, X., & Tang, X. (2014). Tax avoidance and firm value: evidence from China. Nankai Business Review International, 5(1), 25–42. https://doi.org/10.1108/NBRI-10-2013-0037
Cristea, A. D., & Nguyen, D. X. (2016). Transfer pricing by multinational firms: New evidence from foreign firm ownerships. American Economic Journal: Economic Policy, 8(3), 170–202. https://doi.org/10.1257/pol.20130407
Damayanti, H. H., & Prastiwi, D. (2017). Peran OECD dalam Meminimalisasi Upaya Tax Agresiveness pada Perusahaan Multinationaly. Jurnal Akuntansi Multiparadigma (JAMAL), 8(1), 1–227.
Firmansyah, A., & Yunidar, A. (2020). Financial Derivatives, Financial Leverage, Intangible Assets, and Transfer Pricing Aggressiveness: Evidence from Indonesian Companies. Jurnal Dinamika Akuntansi Dan Bisnis, 7(1), 1–14. https://doi.org/10.24815/jdab.v7i1.15334
Ghozali. (2018). Aplikasi Analisis Multivariate. BPEE.
Ginting, D. B., Triadiarti, Y., & Purba, E. L. (2017). Pengaruh Profitabilitas, Pajak, Mekanisme Bonus, Kepemilikan Asing, Debt Covenant Dan Intangible Assets Terhadap Transfer Pricing. Jurnal Akuntansi Keuangan & Perpajakan Indonesia.
He, Y., Xu, L., & McIver, R. P. (2019). How does political connection affect firm financial distress and resolution in China? Applied Economics, 51(26), 2770–2792. https://doi.org/10.1080/00036846.2018.1558358
Irawan, F., & Ulinnuha, I. A. (2022). Transfer Pricing Aggressiveness in Indonesia: Multinationality, Tax Haven, and Intangible Assets. Jurnal Dinamika Akuntansi Dan Bisnis, 9(1), 1–18. https://doi.org/10.24815/jdab.v9i1.23217
Ivanda, M. N. M., Orbaningsih, D., & Muawanah, U. (2024). CSR ’ s Role In Tax Avoidance : Impact Of Financial Performance And Green Accounting. 28(03), 518–536.
Kusuma, I. C., Hutomo, Y. P., & Harini, R. (2022). THE EFFECT OF TAXES, FOREIGN OWNERSHIP, AND TUNNELING INCENTIVES ON TRANSFER PRICING (STUDY ON BASIC INDUSTRIAL AND CHEMICAL SECTOR COMPANIES IN IDX 2017-2020 PERIOD). Karimah Tauhid, 1(1), 151–166.
Merle, R., Al-Gamrh, B., & Ahsan, T. (2019). Tax havens and transfer pricing intensity: Evidence from the French CAC-40 listed firms. Cogent Business and Management, 6(1). https://doi.org/10.1080/23311975.2019.1647918
Nurul Alawiyah, Umdiana, N., & Suprihatin, N. S. (2022). PENGARUH PAJAK, DEBT COVENANT DAN TUNNELING INCENTIVE TERHADAP KEPUTUSAN TRANSFER PRICING. LAWSUIT Jurnal Perpajakan, 1(1), 151–166. https://doi.org/10.30656/lawsuit.
Putri, N., & Sekar Mayangsari. (2023). Pengaruh Related Party Transaction, Thin Capitalization, Intangible Assets, Dan Kompensasi Kerugian Fiskal Terhadap Penghindaran Pajak. Jurnal Ekonomi Trisakti, 3(2), 3231–3242. https://doi.org/10.25105/jet.v3i2.17938
Rachmawati, N. A., & Fitriana, A. (2021). The Effect of Financial Constraints and Institutional Ownership on Tax Agressiveness. ACCRUALS (Accounting Research Journal of Sutaatmadja), 5(01), 38–53. https://doi.org/10.35310/accruals.v5i01.606
Rachmawati, N. A., Utama, S., Martani, D., & Wardhani, R. (2019). Determinants of the complementary level of financial and tax aggressiveness: A cross-country study. International Journal of Managerial and Financial Accounting, 11(2), 145–166. https://doi.org/10.1504/IJMFA.2019.099772
Ramadhany, P. A. N., & Amin, M. N. (2023). PENGARUH PAJAK, LEVERAGE, PROFITABILITAS, DAN TUNNELING INCENTIVE TERHADAP TRANSFER PRICING. Jurnal Ekonomi Trisakti, 3(2), 3643–3652.
Sejati, G. W., & Triyanto, D. N. (2021). PENGARUH PAJAK, UKURAN PERUSAHAAN, EXCHANGE RATE, DAN INTANGIBLE ASSET TERHADAP TRANSFER PRICING. E-Proceeding of Management, 8(2), 1085–1092.
Sujarwo, S., & Sjahputra, A. (2022). PENGARUH INTELLECTUAL CAPITAL, INVENTORY INTENSITY DAN MANAGERIAL OWNERSHIP TERHADAP EFFECTIVE TAX RATE (Studi Empiris pada Perusahaan Sektor Pertambangan yang Terdaftar di Bursa Efek Indonesia Tahun 2016-2020). SCIENTIFIC JOURNAL OF REFLECTION : Economic, Accounting, Management and Business, 5(4), 1121–1131. https://doi.org/10.37481/sjr.v5i4.588
Utami, R.D., et al. (2020). THE EFFECT OF TRANSFER PRICING, THIN CAPITALIZATION, AND TAX HAVEN UTILIZATION TOWARD TAX AGGRESSIVENESS (Study in the Consumer Goods Industry Sector that is Registered at Indonesia Stock Exchange Period 2015-2018). 7(2), 5988–5995.
Wardhana, R., Anam, S., Nur, M., Ivanda, M., & Tjaraka, H. (2024). The Accounting Irregularities , Transfer Pricing Aggresiveness , and Firm Value : Does Tax Aggressiveness Matter ? 16(1), 75–87. https://doi.org/10.26740/jaj.v16n1.p75-p87
Wardhana, R., Anshori, M., & Tjaraka, H. (2022). Determinants Moderators of Financial Distress: An Evidence Affiliation Group and Political Connection. AKRUAL: Jurnal Akuntansi, 14(1), 132–147. https://doi.org/10.26740/jaj.v14n1.p132-147
Wulandari, A., & Fitrianti, D. (2024). Pengaruh Pajak , Intangible Assets , Dan Ukuran Perusahaan Terhadap Transfer Pricing. Jurnal Akuntansi Keuangan Dan Bisnis, 2(2), 534–541.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 Reza Kumala, Muhamad Raffi Faruqi Ruslan, Murtanto
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
Abstract views: 0
,
PDF Downloads: 0
