DEVELOPMENT OF TRANSFER PRICING REGULATIONS IN INDONESIA

Daniel Edgar Hirasma Saragi

Abstract

This research driven by the urgency to understanding the massive improvement of transfer pricing regulations in Indonesia. Directorate General of Taxes (DGT) have adjusted along with the advancement of macroeconomic, business field, cross border trade, and domestic needs. This study aims to describe the development of transfer pricing regulations in Indonesia, since it was first enacted in 1983. The analysis covers three main topics, which are the implementation and examination of arm's length principle, transfer pricing documentation, and advance pricing agreement. This research used qualitative methodology, particularly analytical descriptive approach. Analytical descriptive performed by analyze, capture, and summary a set of regulations, then provide them in the text containing important provision from each regulation. The result shows that there has been a significant development in transfer pricing regulation in Indonesia. Since the first time enacted, there are eight regulations concerning arm’s length principle, three regulations concerning TP Doc, and five regulations concerning advance pricing agreement which enacted sequentially. Those have provided more detailed rules and fulfilled stakeholders' needs. Novelty of this research can be seen through the comprehensive inventory of transfer pricing regulations in Indonesia, which can provide broad explanation for readers. This research may contribute to enrich the transfer pricing literature for academics. Besides, by describe the whole transfer pricing regulations in Indonesia, this research may also contribute to broaden taxpayer’s understanding and improve service quality of tax authority. From this research, it can be concluded that development of the transfer pricing regulations has provided legal certainty and efficiency for taxpayers and DGT in its implementation.

Keywords

Transfer Pricing; Tax; Regulation; Arm's Length Principle

Full Text:

PDF

References

Beebeejaun, A. (2017). The efficiency of transfer pricing rules as a corrective mechanism of income tax avoidance. Journal of Civil and Legal Sciences, 7(1), 237. https://doi.org/https://doi.org/10.4172/2169-0170.1000237

Brauner, Y. (2020). Chapter 12 International tax treaty dispute resolution, the mutual agreement procedure, and the promise of mandatory arbitration for developing countries. In Research Handbook on International Taxation. Cheltenham: Edward Elgar Publishing. https://doi.org/10.4337/9781788975377.00024

Direktorat Jenderal Pajak. (1993a). Keputusan Direktur Jenderal Pajak Nomor KEP-01/PJ.7/1993 tentang Pedoman Pemeriksaan Wajib Pajak dalam Hubungan Istimewa. https://datacenter.ortax.org/ortax/aturan/show/1413

Direktorat Jenderal Pajak. (1993b). Surat Edaran Direktur Jenderal Pajak Nomor SE-04/PJ.7/1993 Tentang Panduan Pelaksanaan Transfer Pricing. https://perpajakan.ddtc.co.id/sumber-hukum/peraturan-pusat/surat-edaran-direktur-jenderal-pajak-se-04pj-71993

Direktorat Jenderal Pajak. (2010a). Peraturan Direktur Jenderal Pajak Nomor PER-43/PJ/2010 Tentang Penerapan Prinsip Kewajaran Dan Kelaziman Usaha Dalam Transaksi Antara Wajib Pajak Dengan Pihak Yang Mempunyai Hubungan Istimewa. https://pajak.go.id/sites/default/files/2019-04/PER - 43.PJ_.2010 tg Prinsip Kewajaran dan Kelaziman.pdf

Direktorat Jenderal Pajak. (2010b). Peraturan Direktur Jenderal Pajak Nomor PER-69/PJ/2010 Tentang Kesepakatan Harga Transfer (Advanced Pricing Agreement: Vol. L. https://datacenter.ortax.org/ortax/aturan/show/14529.

Direktorat Jenderal Pajak. (2011). Peraturan Direktur Jenderal Pajak Nomor PER-32/PJ/2011 Tentang Perubahan Atas Peraturan Direktur Jenderal Pajak Nomor PER-43/PJ/2010 Tentang Penerapan Prinsip Kewajaran Dan Kelaziman Usaha Dalam Transaksi Antara Wajib Pajak Dengan Pihak Yang Mempunyai Hub. https://datacenter.ortax.org/ortax/aturan/show/14855

Direktorat Jenderal Pajak. (2013a). Peraturan Direktur Jenderal Pajak Nomor PER-22/PJ/2013 Tentang Pedoman Pemeriksaan Terhadap Wajib Pajak Yang Memiliki Hubungan Istimewa. https://datacenter.ortax.org/ortax/aturan/show/15275

Direktorat Jenderal Pajak. (2013b). PERATURAN DIREKTUR JENDERAL PAJAK NOMOR PER - 43/PJ/2013 TENTANG BENTUK DAN ISI SURAT SETORAN PAJAK PAJAK BUMI DAN BANGUNAN.

Direktorat Jenderal Pajak. (2013c). SURAT EDARAN DIREKTUR JENDERAL PAJAK NOMOR SE - 50/PJ/2013 TENTANG PETUNJUK TEKNIS PEMERIKSAAN TERHADAP WAJIB PAJAK YANG MEMPUNYAI HUBUNGAN ISTIMEWA. https://datacenter.ortax.org/ortax/aturan/show/15381

Doyle, L., McCabe, C., Keogh, B., Brady, A., & McCann, M. (2020). An overview of the qualitative descriptive design within nursing research. Journal of Research in Nursing, 25(5), 443–455. https://doi.org/10.1177/1744987119880234

Fun, J. A., & Rahayu, N. (2018). Advancing Policy, Governance, and Innovation in Digital Ecosystems: A Multidisciplinary Approach. Analysis of the Implementation of Transfer Pricing Documentation Policy in Indonesia, 247–256. https://www.researchgate.net/profile/Neni-Susilawati/publication/334286427_Policy_Analysis_on_the_Maximum_Limit_of_Occupational_Expenses_in_the_Article_21_Income_Tax_Calculation/links/5d22814f299bf1547ca1ae4a/Policy-Analysis-on-the-Maximum-Limit-of-Occupational-Expenses-in-the-Article-21-Income-Tax-Calculation.pdf

González-Barreda, P. A. H. (2018). A Historical Analysis of the BEPS Action Plan: Old Acquaintances, New Friends and the Need for a New Approach. Intertax, 46(4), 278–295. https://doi.org/10.54648/TAXI2018030

Hansen, D., & Mowen, M. (2007). Managerial accounting (8th ed.). Stamford: Thomson Higher Education.

Huda, M. K., Nugraheni, N., & Kamarudin, K. (2017). The Problem of Transfer Pricing in Indonesia Taxation System. International Journal of Economics and Financial Issues, 7(4), 139–143. https://www.econjournals.com/index.php/ijefi/article/view/4793

Irfan, R. M., Suarda, I. G. W., & Wildana, D. T. (2021). Pertanggungjawaban Pidana Korporasi Atas Penyalahgunaan Transfer Pricing Untuk Penghindaran Pajak. INTERDISCIPLINARY JOURNAL ON LAW, SOCIAL SCIENCES AND HUMANITIES, 2(2), 199. https://doi.org/10.19184/idj.v2i2.28009

Kementerian Keuangan Republik Indonesia. (2015). Tentang Tata Cara Pembentukan Dan Pelaksanaan Kesepakatan Harga Transfer (Advance Pricing Agreement): Vol. L.

Kementerian Keuangan Republik Indonesia. (2016). PERATURAN MENTER! KEUANGAN REPUBLIK INDONESIA NOMOR 213 / PMK. 03/ 2016 TENTANG JENIS DOKUMEN DAN/ ATAU INFORMASI TAMBAHAN YANG WAJIB DISIMPAN O LEH WAJIB PAJAK YANG MELAKUKAN TRANSAKSI DENGAN PARA PIHAK YANG MEMPUNYAI HUBUNGAN ISTIMEWA DAN TATA CARA PENG.

Kementerian Keuangan Republik Indonesia. (2020). Peraturan Menteri Keuangan Nomor 22/PMK.03/2020 Tentang Tata Cara Pelaksanaan Kesepakatan Harga Transfer (Advance Pricing Agreement. https://jdih.kemenkeu.go.id/fullText/2020/22~PMK.03~2020Per.pdf

Kramarova, K. (2021). Transfer Pricing and Controlled Transactions in Connection with Earnings Management and Tax Avoidance. The 20th International Scientific Conference Globalization and Its Socio-Economic Consequences 2020, 92, 1–9. https://doi.org/10.1051/shsconf/20219202031

Mangonting, Y. (2018). Quo Vadis Kepatuhan Pajak? Multiparadigma, 9(3), 451–470. https://doi.org/10.18202/jamal.2018.04.9027

Menteri Keuangan Republik Indonesia. (2023). Peraturan Menteri Keuangan Republik Indonesia Nomor 172 Tahun 2023 tentang Penerapan Prinsip Kewajaran dan Kelaziman Usaha dalam Transaksi yang Dipengaruhi Hubungan Istimewa (172 TAHUN 2023). https://jdih.kemenkeu.go.id/download/b0b74668-cf4d-456b-bb23-be5e1aeac2cb/2023pmkeuangan172.pdf

Nindita, A., Yunintyas, L. F., Rahmaningtyas, R., & Mellynia, S. S. (2023). Implementasi PMK 22/PMK.03/2020 Guna Menindaklanjuti Perubahan Mutual Agreement Procedure dalam Pelaksanaan Transfer Pricing di Indonesia. https://www.academia.edu/50915847/Implementasi_PMK_22_PMK_03_2020_Guna_Menindaklanjuti_Perubahan_Mutual_Agreement_Procedure_dalam_Pelaksanaan_Transfer_Pricing_di_Indonesia

Ningtias, A. (2022). Evaluasi Putusan Sengketa Pajak Atas Pembayaran Royalti Kepada Pihak Afiliasi: Studi Kasus Putusan Banding Pengadilan Pajak Periode 2014-2019. Jurnal Ekonomi, Manajemen Dan Perbankan, 8(2), 85–94. https://doi.org/10.35384/jemp.v8i2.272

Noonan, C., & Plekhanova, V. (2023). MANDATORY BINDING DISPUTE RESOLUTION IN THE BASE EROSION AND PROFIT SHIFTING (BEPS) TWO PILLAR SOLUTION. International and Comparative Law Quarterly, 72(2), 437–476. https://doi.org/10.1017/S0020589323000118

Oats, L., & Tuck, P. (2019). Corporate tax avoidance: is tax transparency the solution? Accounting and Business Research, 49(5), 565–583. https://doi.org/10.1080/00014788.2019.1611726

OECD. (1979). Transfer Pricing and Multinational Enterprises. https://www.oecd.org/content/dam/oecd/en/publications/reports/1979/06/transfer-pricing-and-multinational-enterprises_g1g191ec/9789264167773-en.pdf

OECD. (2015). Aligning Transfer Pricing Outcomes with Value Creation, Actions 8-10 - 2015 Final Reports. https://doi.org/10.1787/9789264241244-en

Oktaviani, D. T., & Tambunan, M. R. U. D. (2021). The Implementation of Advance Pricing Agreement in Indonesia Following The Adoption of Dispute Resolution Guideline. BISNIS & BIROKRASI: Jurnal Ilmu Administrasi Dan Organisasi, 27(2), 89–96. https://doi.org/10.20476/jbb.v27i2.11756

Permatasari, M. I., & Husnasari, F. A. (2022). Penerapan ARM’s Length Principle dalam Praktek Abuse of Transfer Pricing Perusahaan Multinasional di Indonesia. RechtIdee, 17(2), 352–373. https://doi.org/10.21107/ri.v17i2.5245

Sandelowski, M. (2000). Whatever happened to qualitative description? Research in Nursing & Health, 23(4), 334–340. https://doi.org/10.1002/1098-240X(200008)23:4

Sari, P. S., & Salamun, S. (2019). Analisis Prinsip Kewajaran dan Kelaziman Usaha Terhadap Transaksi Afiliasi (Studi Kasus PT. ABC). Jurnal Akuntansi Pasar Modal, 2(1). https://jurnal.bcm.ac.id/index.php/japm/article/view/13

Septarini, N. (2012). Regulasi dan Praktik Transfer Pricing di Indonesia dan Negara Maju. AKUNESA, 1(1). https://ejournal.unesa.ac.id/index.php/jurnal-akuntansi/article/view/282

Singh, M. M. (2022). Role of Inclusive Tax Policies in Stimulating Sustainable Development. SPECIALUSIS UGDYMAS, 1(43), 3199–3208. http://www.sumc.lt/index.php/se/article/view/379

Sitkiewicz, M., & Białek-Jaworska, A. (2024). Profit shifting to tax havens: Withholding tax impact on passive flows from Poland. Transnational Corporations Review, 16(2), 200059. https://doi.org/10.1016/j.tncr.2024.200059

Sukarno, S. (2022). Apakah Transfer Pricing Documentation Meningkatkan Kepatuhan Pajak? Jurnal Pajak Dan Keuangan Negara (PKN (Vol. 4, Issue 1S, pp. 245–252). https://doi.org/10.31092/jpkn.v4i1S.1864

Tørsløv, T., Wier, L., & Zucman, G. (2023). The Missing Profits of Nations. The Review of Economic Studies, 90(3), 1499–1534. https://doi.org/10.1093/restud/rdac049

Unger, B., Rossel, L., & Ferwerda, J. (2021). Combating Fiscal Fraud and Empowering Regulators Bringing Tax Money Back into the COFFERS. Oxford: Oxford University Press.

Wirartha, I. M. (2006). Metodologi Penelitian: Sosial Ekonomi. Yogyakarta: Gaha Ilmu.

Zaki, A., & Irawan, F. (2022). Intra-group Services: Suatu Perspektif Fiskus. Jurnal Pajak Indonesia, 6(2), 275–286. https://doi.org/10.31092/jpi.v6i2.1805

DOI: https://doi.org/10.20961/jiep.v24i2.90934

Refbacks

  • There are currently no refbacks.