Comparative Studies of Tax Administration on Transfer Pricing
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Abstract
Transfer pricing practices are employed for tax avoidance by shifting profits through transactions with related parties. This study aims to provide recommendations for Indonesia's transfer pricing tax administration by examining the transfer pricing practices of Australia, the United Kingdom, the United States, China, Japan, Singapore, and South Africa. This research adopts a qualitative approach using literature review and descriptive statistics from the countries included in the study sample. The findings of this study indicate ten considerations for reconstructing transfer pricing administration: tax authorities should have relevant and reliable comparable data, collaborate with other entities to acquire comparable databases, optimally utilize the Automatic Exchange of Information for Country by Country Reports, leverage technology, enhance the skills of the tax authority and taxpayer personnel, establish an Alternative Dispute Resolution, consider using profit split method, promptly resolve transfer pricing issues and disclose Advance Pricing Agreement data, implement safe harbor rules, and educate taxpayers on transfer pricing regulations.
Keywords: tax administration, tax avoidance, transfer pricing.
Abstrak
Praktik transfer pricing dilakukan untuk penghindaran pajak dengan pergeseran laba melalui transanksi dengan pihak yang memiliki hubungan istimewa. Penelitian ini bertujuan untuk memberikan rekomendasi administrasi pajak atas transfer pricing di Indonesia dengan melihat praktik transfer pricing yang dilakukan Negara Australia, Inggris, Amerika, Cina, Jepang, Singapura, Afrika Selatan. Penelitian ini menggunakan pendekatan kualitatif dengan menggunakan studi literatur dan statistik deskriptif dari negara-negara yang dijadikan sampel penelitian. Hasil dari penelitian ini menunjukan 10 pertimbangan dalam rekonstruksi administrasi transfer pricing yaitu otoritas pajak harus memiliki data pembanding yang relevan dan handal, menjalin kerjasama dengan entitas lain dalam perolehan database pembanding, memanfaatkan secara optimum Automatic Exchange of Information untuk Country by Country Report, memanfaatkan teknologi, meningkatkan keterampilan sumber daya manusia otoritas pajak dan wajib pajak, memiliki Alternative Dispute Resolution, mempertimbangkan penggunaan metode transfer pricing profit split, penyelesaian segera masalah transfer pricing dan mengungkapkan data Advance Pricing Agreement, menerapkan safe harbour dan mengedukasi pengetahuan wajib pajak atas aturan transfer pricing.
Kata kunci: administrasi pajak, tax avoidance, transfer pricing
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