THE EFFECT OF EFFECTIVE TAX RATE, TUNNELING INCENTIVE, AND EXCHANGE RATE ON COMPANY DECISIONS TO TRANSFER PRICING : FOOD AND CONSUMPTION SUB-SECTOR COMPANIES LISTED ON THE INDONESIA EVIDENCE

Abstract

The purpose of this study was to determine the effect of the Effective Tax Rate, Tunneling Incentive and Exchange Rate on the company's decision to conduct Transfer Pricing at food and consumption sub-sector companies listed on the Indonesia Stock Exchange (BEI). The research period used is 5 years, namely the 2015-2019 period. This study's population includes the Food and Consumption Sub-Sector Companies listed on the Indonesia Stock Exchange for the period 2015-2019. The sampling technique was using a purposive sampling technique. Based on the established criteria, a total sample of 7 companies was obtained. The type of data used is secondary data obtained from the Indonesia Stock Exchange website. The analysis method used is panel data regression analysis, including the F test and t-test processed using the Eviews 9.0 program. The results showed that the Effective Tax Rate positively affected Transfer Pricing and the Exchange Rate harmed Transfer Pricing, while Tunneling Incentive did not affect Transfer Pricing.