Analysis of PSM after implementation of CbCR policy in Indonesia

Adang Hendrawan (), Ifti Khori Royhan (), Arfah Habib Saragih () and Milla Sepliana Setyowati ()

Jurnal Akuntansi dan Auditing Indonesia, 2021, vol. 25, issue 2, 170-182

Abstract: The Country-by-Country Reporting (CbCR) policy requires that multinational enterprises report financial information of all of their business group members globally. The presence of the information within such policy framework should be reviewed as to whether it will be useful for the Profit Split Method (PSM) implementation. This research used a qualitative approach with data collection techniques including indepth interview. The results indicate that in the future, the PSM will grow in urgency with the development of multinational enterprises and the Anti-BEPS (Base Erosion and Profit Shifting) project. However, the PSM implementation in Indonesia at the present time is still rare due to particular difficulties encountered by both taxpayers and tax authorities. CbCR data alone is not sufficient to be used as a basis for the PSM implementation. Nevertheless, CbCR can still be used by taxpayers as a basis for the PSM implementation in collaboration with other data and information.

Keywords: Transfer pricing; arm’s length principle; country-by-country reporting; profit split method (search for similar items in EconPapers)
Date: 2021
References: Add references at CitEc
Citations:

Downloads: (external link)
https://journal.uii.ac.id/JAAI/article/view/20495/11897 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:uii:jaaife:v:25:y:2021:i:2:p:170-182:id:20495

Access Statistics for this article

Jurnal Akuntansi dan Auditing Indonesia is currently edited by Ana Yuliani

More articles in Jurnal Akuntansi dan Auditing Indonesia from Accounting Department, Faculty of Business and Economics, Universitas Islam Indonesia
Bibliographic data for series maintained by Ana Yuliani ().