Academy of Accounting and Financial Studies Journal Volume 25, Issue 5, 2021 1 1528-2635-25-5-780 THE IMPACT OF STATE REVENUE AND BONUS MECHANISM ON TRANSFER PRICING DECISIONS WITH TAX MINIMIZATION AS A MODERATING VARIABLE Trisni Suryarini, Accounting Department, Faculty of Economics Universitas Negeri Semarang Ain Hajawiyah, Accounting Department, Faculty of Economics Universitas Negeri Semarang Retnoningrum Hidayah, Accounting Department, Faculty of Economics Universitas Negeri Semarang Etty Gurendrawati, Universitas Negeri Jakarta Magdalena Nany, Universitas Kristen Surakarta ABSTRACT This study aims to examine the effect of state revenue and bonus mechanism on transfer pricing. This study also aims to examine the role of tax minimization as moderating variable in the effect of state revenue and bonus mechanism on transfer pricing. The population of this study is manufacturing companies listed on the Indonesia Stock Exchange from 2013 to 2018, totaling 145 companies. The sample was selected by purposive sampling technique with a total of 108-unit analysis. The analytical method used in this study is moderation regression analysis with an absolute difference test. The hypothesis testing used is the IBM SPSS Version 23 application. The result shows that the state revenue and bonus mechanism variable do not significantly affect on the transfer pricing variable. The tax minimization variable moderates the effect of state revenue on transfer pricing positively. However, tax minimization does not moderate the effect of the bonus mechanism on transfer pricing. Keywords: Bonus Mechanism, Tax Minimization, Transfer Pricing, State Revenue. Article Classification: Research paper INTRODUCTION Companies carry out tax management to minimize tax. Tax planning reduce the tax burden as maximum as possible to increase efficiency and competitiveness (Suandy, 2016). One of the tax planning methods used is the transfer pricing. Companies do transfer pricing to maximize profits and minimize taxes since taxes are considered a burden that will reduce profits. Suandy (2016) defined transfer pricing into two different definitions. First, transfer pricing is a pure business strategy and tactic without reducing the tax burden. Second, transfer pricing saves tax with tactics, such as shifting taxes to countries with low tax rates. Transfer pricing also means the price of a product in divisions within one company, between local companies, or local companies with abroad companies (Hartati et al., 2015). Ernst & Young in (2010) conducted a survey entitled Global Transfer Pricing Survey with Taxpayer respondents from Europe, America, and the Asia Pacific. The survey results