| dc.description.abstract | The development of digitalization and the global economy in today's rapidly growing business activities requires Indonesian tax authorities to adjust various policies to be able to tax the latest business innovations. Corporate accounting records that often ignore tax regulations have weakened the government's ability to tax every business activity, especially due to the practice of recording affiliated transactions that take place with group companies located outside the Indonesian tax authority area.
The purpose of this study is to determine the development of transfer pricing scheme policy implementation in Indonesia, transfer pricing practice schemes conducted by multinational companies, as well as efforts made to overcome transfer pricing activities in Indonesia.
The method used in this research is qualitative research by using the method of literature study or literature review and also interview techniques to obtain information on this research. The research location is the Low Tax Office of Medan Polonia which is located on Jl. Suka Mulia No.17A, A U R, Medan Maimun District, Medan City, North Sumatra 20151. The research was conducted from April to June 2023.
The result of this research is that various policies passed in Indonesia are motivated by the existence of pre-existing regulations that are considered inadequate to handle every case that occurs in Indonesia during the tax year and also Indonesia's participation in multilateral relations which requires it to comply with every decision passed. Based on the case raised, the scheme of transfer pricing practices in multinational manufacturing companies is caused by affiliated transactions that occur between subsidiaries operating in Indonesia and holding companies operating outside the Indonesian tax authority | en_US |
