Volume 2 Issue 2 | 2025 | View PDF
Paper Id:IJMSM-V2I2P118
doi: 10.71141/30485037/V2I2P118

The Effect of Transfer Pricing, Capital Intensity, and Firm Size on Tax Avoidance (Empirical Study on Mining Sector Companies Listed on the Indonesian Stock Exchange in 2021-2023)

Raisya Zela Oktavia, Vince Ratnawati, Nurul Badriyah

Citation:
Raisya Zela Oktavia, Vince Ratnawati, Nurul Badriyah, "The Effect of Transfer Pricing, Capital Intensity, and Firm Size on Tax Avoidance (Empirical Study on Mining Sector Companies Listed on the Indonesian Stock Exchange in 2021-2023)" International Journal of Multidisciplinary on Science and Management, Vol. 2, No. 2, pp. 187-200, 2025.

Abstract:
Tax avoidance is a legal activity that does not violate tax regulations, carried out by taxpayers to reduce their tax liabilities by exploiting loopholes in tax laws. Nevertheless, this practice can be considered detrimental to the state and contrary to the fundamental objectives of taxation. This study aims to analyze the effect of Transfer Pricing, Capital Intensity, and Firm Size on Tax Avoidance (An Empirical Study on Mining Sector Companies Listed on the Indonesia Stock Exchange for the Period 2021–2023). The population in this study consists of mining sector companies listed on the Indonesia Stock Exchange during the 2021–2023 period. The sampling technique used is purposive sampling, resulting in a sample of 18 companies. The data analysis method used in this research is multiple regression analysis. The results of this study indicate that transfer pricing has an effect on tax avoidance, while capital intensity and firm size do not have an effect on tax avoidance.

Keywords: Tax Avoidance, Transfer Pricing, Capital Intensity, Firm Size.

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