Transfer Pricing

Course unit title

Transfer Pricing

Course unit code

AKP604

Type of course unit (compulsory, optional)

Optional

Level of course units (according to

EQF: first cycle Bachelor, second cycle Master)

Second Cycle Master

Year of study when the course unit is delivered (if applicable)

2021–2022

Semester/trimester when the course unit is delivered

3rd semester

Number of ECTS credits allocated

4.8 ECTS

Name of lecturer(s)

1. Dr. Elia Mustikasari, M.Si, CA, CMA, BKP, BAK, Ak.
2. Wan Juli, SE, MBA, CPA, BKP, Ak.

Learning outcomes of the course unit

1. Students are able to explain the basic concept of arm's length in Transfer Pricing
2. Students are able to apply how to set the price
3. Students are able to apply how to test the price
4. Students are able to prepare the necessary documentation in the Transfer Pricing

Mode of delivery (face-to-face, distance learning)

Face-To-Face and Distance Learning (using AULA UNAIR)

Prerequisites and co-requisites (if applicable)

-

Course content

1. Preliminary:
   1. Transfer Pricing in Tax perspective
   2. The behavior of multinational companies in Transfer Pricing
   3. Rules of law on Transfer Pricing, both national and international
2. Basic concepts:
   1. Definition of Transfer Pricing
   2. Principles of National and International Tax Law
   3. Arm's Length Principle
3. Functional Analysis:
   1. Function Analysis
   2. Asset Analysis
   3. Risk Analysis
4. Comparability Analysis
   1. Comparable & reliable comparable
   2. Comparability analysis steps
   3. Comparable factors
5. Selecting Comparator:
   1. Internal and External Comparison
   2. Guide to Choosing the Right Comparator
6. Transfer Pricing Analysis Method:
   1. The history of Transfer Pricing methods and aspects of method selection
   2. Traditional Transaction Methods
   3. Transactional Profit Methods
7. Arm's Length Measurement Issues:
   1. Problems in Comparability Adjustment
   2. Aggregation Approach and Financial Statement Segmentation Segregation:
      1. Segregation
      2. Aggregation
   3. Profit Level Indicator
   4. Fairness Range

Recommended or required

reading and other learning resources/tools

1. Darussalam, Danny Septriadi and B. Bawono Kristiaji (Editors), 2017 Revised Edition, Transfer Pricing: Ideas, Strategies and Practical Guides from an International Tax Perspective, Danny Darussalam Tax Center.
2. OECD Guidelines 2017.
3. Laws and Regulations that apply in Indonesia.

Planned learning activities and teaching methods

1. Lectures
2. Discussion
3. Individual assignments

Language of instruction

Indonesian

Assessment methods and criteria

Midterms 40%, Finals 60%