PENGARUH TAX MINIMIZATION, LEVERAGE DAN UKURAN PERUSAHAAN TERHADAP KEPUTUSAN PRAKTIK TRANSFER PRICING DIMODERASI OLEH COVID-19 PADA PERUSAHAAN SEKTOR MANUFAKTUR YANG TERDAFTAR DI BEI PADA TAHUN 2016-2021

Abstract

Transfer pricing as a pricing mechanism for transactions made to related parties. Many companies carry out transfer pricing as a form of tax avoidance by taking advantage of differences in tax rates in each country. This study aims to examine the effect of Tax Minimization, Leverage and Firm Size on Transfer pricing Practice Decisions moderated by the Covid-19 in Manufacturing Sector Companies Listed on the Indonesia Stock Exchange in 2016-2021. The sample in this study were fifteen companies. The sampling technique used purposive sampling method. This study used panel data regression analysis using the Eviews9 tool in data processing. The conclusion from this study is that simultaneously Tax Minimization, Leverage and Firm Size affect Transfer pricing Practice Decisions. Partially, Tax Minimization, leverage and firm size have a significant positive effect on Transfer pricing Practice Decisions. Meanwhile, the Covid-19 variable strengthens the positive effect of minimization taxes on the practice transfer price decision. However, it strengthens the negative effect of leverage and firm size on practice transfer pricing decisions.