Transfer Pricing Dynamics: Multinationality, Tax Haven, Intangible Assets and Dual Role of Leverage

Feri Lamoha; Hanna Hanna; Wijaya Triwacananingrum

doi:10.55927/ijbae.v4i6.443

Authors

Feri Lamoha Pelita Harapan University
Hanna Hanna Pelita Harapan University
Wijaya Triwacananingrum Pelita Harapan University

DOI:

https://doi.org/10.55927/ijbae.v4i6.443

Keywords:

Taxation, Tranfer Pricing, Multinational Company

Abstract

This study investigates the influence of Multinationality, Tax Haven, Intangible Assets, and Leverage on Transfer Pricing practices, which may disadvantage high-tax jurisdictions such as Indonesia. Employing a quantitative approach, data were sourced from S&P Capital IQ, corporate websites, and the Indonesia Stock Exchange. Using two regression models, the findings reveal that Multinationality and Tax Haven presence negatively affect Transfer Pricing, while Intangible Assets show no significant impact. Leverage demonstrates a positive effect and, as a moderating variable, attenuates the negative relationship between Tax Haven and Transfer Pricing, while reinforcing the negative association between Intangible Assets and Transfer Pricing. These results underscore the complex dynamics influencing Transfer Pricing and offer valuable insights for policymakers in fostering equitable and sustainable fiscal environments.

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