Veri Irawan, Nuraini A. Nuraini A, Wida Fadhlia, Biizni Putri Bengi
Taxes constitute approximately 82% of the total revenue collected by the government, establishing them as the main source of national income. Nevertheless, certain corporations are believed to engage in strategies aimed at minimizing their tax obligations. This study examines the influence of transfer pricing and earnings management on corporate tax avoidance among non-financial multinational companies listed on the Indonesia Stock Exchange (IDX) over the period 2020-2023. Data were collected through document analysis, primarily sourced from Annual Reports available on the official IDX website and the respective companies' websites. A total of 82 firms met the inclusion criteria, each providing complete financial information for at least four consecutive years. The research hypotheses were examined using multiple regression analysis in SPSS version 29, complemented by panel data estimation methods. The results indicate that transfer pricing has a significantly negative effect on tax avoidance, implying that companies implementing more aggressive transfer pricing strategies tend to exhibit lower tax avoidance behaviors. Conversely, earnings management does not show a statistically meaningful effect on tax avoidance. These findings provide important implications for regulators and policymakers in developing effective strategies to oversee and audit tax avoidance practices, especially those related to transfer pricing. © 2025 IEEE.
Universitas Syiah Kuala, Accounting Department, Banda Aceh, Indonesia
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