The Effect of Tunneling Incentives and Tax Burden on Transfer Pricing in Companies Listed in the Jakarta Islamic Index 70 for the Period 2020–2023

Putri, Elsafira
Illahi, Ilham
Zuwardi, Zuwardi
Doni, Amsah Hendri

Al-Sharf: Jurnal Ekonomi Islam
Vol 7, No 1 (2026)

This study highlights the effect of tunneling incentives and tax burden on transfer pricing. A quantitative method was employed, using secondary data obtained from the official website of the Indonesia Stock Exchange (IDX) (www.idx.co.id), with a sample of 61 companies. The results indicate that tunneling incentives have a positive effect on transfer pricing in companies listed on the Jakarta Islamic Index 70 during the 2020–2023 period; therefore, H1 is accepted. The tax burden has a negative effect on transfer pricing in companies listed on the Jakarta Islamic Index 70 during the 2020–2023 period; therefore, H2 is rejected. Tunneling incentives and tax burden simultaneously and significantly affect transfer pricing in companies listed on the Jakarta Islamic Index 70 during the 2020–2023 period; therefore, H3 is accepted.