Proceedings of the Asia-Pacific Research in Social Sciences and Humanities Universitas Indonesia Conference (APRISH 2019)

Benefit Test Analysis for Management Services Transaction in Transfer Pricing

Authors
Anissa Restuti Amalia, Waluyo
Corresponding Author
Waluyo
Available Online 31 May 2021.
DOI
https://doi.org/10.2991/assehr.k.210531.049How to use a DOI?
Keywords
Transfer pricing, management service, benefit test
Abstract

This paper analyzes the arm’s length range of transfer pricing transactions of PT Wijaya’s management services. One of the risks borne by PT Wijaya is the tax adjustment on management service transactions paid to related parties when they fail to fulfill the benefit test according to the arm’s length range principle. This study employs a case study research. The method is used to dig deeper into the phenomena that occur in PT Wijaya. Thus, it can be proved by the economic or commercial benefit of PT Wijaya in improving or maintaining its business. Data collection was done by interviewing and studying documents to obtain information related to the provision of management services. The results show that the existence of services and benefits received by PT Wijaya cannot be proven because of the lack of supporting documents and the transactions are duplicative services. Duplicative services mean that the management services received should be carried out by PT Wijaya independently.

Copyright
© 2021, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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Volume Title
Proceedings of the Asia-Pacific Research in Social Sciences and Humanities Universitas Indonesia Conference (APRISH 2019)
Series
Advances in Social Science, Education and Humanities Research
Publication Date
31 May 2021
ISBN
978-94-6239-385-1
ISSN
2352-5398
DOI
https://doi.org/10.2991/assehr.k.210531.049How to use a DOI?
Copyright
© 2021, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Cite this article

TY  - CONF
AU  - Anissa Restuti Amalia
AU  - Waluyo
PY  - 2021
DA  - 2021/05/31
TI  - Benefit Test Analysis for Management Services Transaction in Transfer Pricing
BT  - Proceedings of the Asia-Pacific Research in Social Sciences and Humanities Universitas Indonesia Conference (APRISH 2019)
PB  - Atlantis Press
SP  - 388
EP  - 393
SN  - 2352-5398
UR  - https://doi.org/10.2991/assehr.k.210531.049
DO  - https://doi.org/10.2991/assehr.k.210531.049
ID  - Amalia2021
ER  -