Literature Study: Analysis of Transfer Pricing on Tax Avoidance in Manufacturing Companies

Abstract

This research aims to analyze the effect of transfer pricing on tax avoidance in manufacturing companies in Indonesia. Transfer pricing is a pricing strategy in transactions between companies with a special relationship to reduce the tax burden. Multinational companies often use this practice to take advantage of differences in tax rates between countries, so that the company's total tax burden can be minimized. This research uses the Structured Literature Review (SLR) method by reviewing relevant articles. The articles are then collected and analyzed systematically to understand how transfer pricing is used as a tax avoidance tool and its impact on the company's financial structure. It is hoped that the results of this research can become a reference for future researchers to develop further studies on the factors that influence transfer pricing and tax avoidance