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Company PROGRAM PENDIDIKAN
LOGO PROFESI AKUNTANSI
INTERNATIONALNTERNATIONALTRANSFER PRICINGRANSFER PRICING
MUHAMAD MUFTI ARKAN
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AKUNTANSI MANAJEMEN
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InternationalInternationalssues nssues n
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PT ADARO ENERGY
1 MNCNC2 EXPORT-IMPORXPORT-IMPOR3 FREE TRADE ZONEREE TRADE ZONE
4 FOREIGN CURRENCYOREIGN CURRENCY5 TRANSFER PRICINGRANSFER PRICING
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Business looks to themana ement accountant
for international financialand business ex ertise.
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Management Accounting in the
International Environment
Skills needed by managementaccountants
9 PoliticsEconomics
9 Marketing
9 Information SystemsTechnolog
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Multinational Corporation (MNC)
Amultinational
corporation (MNC)is one that does
business in more
than one country insuc a vo ume aits well-being and
than one country.
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Im ortin and Ex ortinIm ortin and Ex ortin
Importing is the processof brin in roduct in
from a foreign country.
xpor ng s e process
of shipping product to a
ore gn coun ry.
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Forei n Trade ZonesForei n Trade Zones
Foreign trade zones
customs port of entry
U.S. soil but
outside U.S.Example:Example:
.
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Exam le of the Advanta es of O eratina Plant in a Foreign Trade Zone
Roadrunner, Inc. operates
foreign trade zone., .
an identical plant just
zone. Both plants,
crude oil from Venezuela.
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Example (continued)
Roadrunner Wilycoyote
Duty paid at purchase $ 0 $24,000
Carrying costs of duty 0 1,920
Duty paid at sale 16,800 0
Wilycoyote paysWilycoyote paysduty at the point ofduty at the point ofpurchase (6% ofpurchase (6% ofTotal dutyTotal duty--relatedrelated
, ., .
carryng cos s .carryng cos s .x 8/12 x $24,000)x 8/12 x $24,000)Roadrunner pays duty atRoadrunner pays duty atpoint of sale because it is inpoint of sale because it is ina foreign trade zone.a foreign trade zone.
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Example (continued)
Roadrunner Wilycoyote
Duty paid at purchase $ 0 $24,000
Carrying costs of duty 0 1,920
Duty paid at sale 16,800 0
Total duty and duty-, ,
Clearly theClearly thea van age approaca van age approac
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A com an ma choose topurchase an existing foreigncom an makin the urchased
e aws o e coun ry perm , anmultinational corporation can simply
company a wholly ownedsubsidiar .
se up a w o y owne su s ary orbranch office in the country.
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of partnership in which
-
enterprise. A specialcase of joint venturecooperation is the
maquiladoraamanu ac urng panlocated in Mexico which
materials and reexportsthem to the UnitedStates.
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A Transaction Risk ExampleA Transaction Risk Example
SuperTubs, Inc., a U.S. firm, sells its line of whirlpool tubs toBonbain, a French distributor. On J anuary 15, Bonbainorders 100 tubs at 1,000 per tub to be paid with French
francs on March 15. The exchange rate on on J anuary 15is seven francs per dollar or 700,000 francs. Suppose thaton March 15 the exchange rate is 7.1 francs per dollar. A$1,408 loss is experienced by SuperTubs, Inc.
Receivable in dollars on J an. 15 $100,000
Received in dollars on March 15
, . ,Exchange loss $ 1,408
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A Transaction Risk ExampleA Transaction Risk Example
If the franc had strengthened against the dollar to a. , ,
occur:
Receivable in dollars on J an. 15 $100,000
Received in dollars on March 15, . ,
Exchange gain $ 1,449
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against gains and
currency exchanges.
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Managing Economic RiskManaging Economic Risk
Economic risk is the impact of exchange
rate fluctuations on the present value of afirms future cash flows.
Example
A U.S. consumer can choose to purchase heavyequipment from either Caterpillar (U.S.) or Komatsu
. ,maker. At an exchange rate of $1 equals 130 yens, theprice is set. Assume the dollar strengthens so theexc ange ra e ecomes equas yens. s owers
Katmatsus price to $74,286.
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Mana in Translation RiskMana in Translation RiskExample
Multinational, Inc., has a foreign division, FD, which hasbeen experiencing eroding sales. Multinational directs FDmanagers o ncrease mar e ng expen ures over efollowing four quarters:
Quarter Expenditures in Local Currency
1 LC10 000
2 LC11,000
3 LC12,100
A 10%increase
each
4 LC13,310 quarter
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Mana in Translation RiskMana in Translation RiskExample (continued)
Suppose that the dollar has strengthened againstthe local currency and the quarterly exchangera es o or un s o oca currency are . , . ,1.35, and 1.50, respectively.
Quarter Expenditures in Local Currency
1 $10,000
2 9,1673 8,963
It looks like FDhas decreasedexpenditures.
,
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Advantages of Decentralization
in the MNC
The quality of information is better at the local level.
Local managers in the MNC are capable of a more
timely response in decision making. Social, legal, and language barriers are minimized.
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easurng er ormance n e u na ona rm
It is particularly difficultto com are theperformance of a
mana er of a division inone country with theerformance of a
manager of a division inanother countr .
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An example of misleading results:
Assets Revenues Net Income Margin Turnover ROI
Brazil 10 6 3 0.50 0.60 0.30
Canada 18 13 10 0.77 0.72 0.55
Spain 15 10 6 0.60 0.67 0.40
Analysis: On the basis of ROI, it appears that the manager of
,the Brazilian subsidiary did the worst job. However, theinflation rate in Brazil was 100% for the year. After adjusting
e asse ase or n a on, e wou e or eBrazilian manager.
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14 -25Environmental Factors Affecting
er ormance va ua on n e
conom c ac ors:
Organization of central banking system
Economic stability
x s ence o cap a mar e s
Currency restrictions
Adapted from Wagdy M. Abdal lah, Change the Envi ronment or Change the System,Management Account ing (October 1986): pp. 33-36.
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14 -26Environmental Factors Affecting
Quality, efficiency, and effectiveness of legal structure
Effect of defense policy
Im act of forei n olic
Level of political unrest
Adapted from Wagdy M. Abdal lah, Change the Envi ronment or Change the System,Management Account ing (October 1986): pp. 33-36.
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14 -27Environmental Factors Affecting
Educational Factors:
Literacy rate
Extent and degree of formal education and training systems
Extent and quality of management development programs
Adapted from Wagdy M. Abdal lah, Change the Envi ronment or Change the System,Management Account ing (October 1986): pp. 33-36.
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14 -28Environmental Factors Affecting
Sociological Factors:
Social attitude toward industry and business
Cultural attitude toward authority and persons insubordinate positions
Cultural attitude toward productivity and achievement(work ethic)
Social attitude toward material gain
Cultural and racial diversity
Adapted from Wagdy M. Abdal lah, Change the Envi ronment or Change the System,Management Accounting (October 1986): pp. 33-36.
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This approach identifies the minimumand maximum price that a selling
division would be willing to acceptand the maximum price that a buyingdivision would be willing to pay.
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The Transfer Pricing Illustration
produces small appliances.The Small Parts Divisionproduces parts used by the
Small Motors Division. Thepar s a so are so o o ermanufacturers and
.
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The Transfer Pricing Illustration
The Small Motors Division isoperating at 70 percent capacity.A request is received for
100,000 units of a certain model
this motor can be supplied by
the Small Parts Division. The
Small Parts Division onlyexperiencing a cost of $5 per
unit.
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The Transfer Pricing Illustration
Using the $8 transfer price,,
calculated as follows:
Direct materials $10
Transferred-in component 8rec a oVariable overhead 1
Total cost $31
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The Transfer Pricing Illustration
The Small Motors Division isoperating at 70 percent capacity, sothe $10 fixed cost is not relevant.
Recalculating the cost--
Direct materials $10
Transferred-in component 8Direct labo 2Variable overhead 1
The Small Motors Division can pay the Small Parts Division $8 perunit and still make a substantial contribution to the overall profitabilityof the Division.
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competitive markets for the,
price may no longer be suitable.
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,
prices may be a practicalalternative. O ortunit costscan be used to define the
boundaries of the negotiationset.
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Ne otiated Transfer Prices
1. A division manager who has private informationmay take advantage of another divisionalmanager.
2. Performance measures may be distorted by thenegotiated skills of managers.
. ego a on can consume cons era e me anresources.
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LOGO
INTERNATIONALNTERNATIONALTRANSFER PRICINGRANSFER PRICING
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Income Taxes andIncome Taxes and
Transfer PricingTransfer Pricing
Action Tax ImpactAction Tax Impact
Belgian subsidiary of parent 42% tax ratecompany produces a component 100 revenue $100 at a cost of $100 per unit.Title to cost = $0
the component is transferred to a Taxes paid = $0reinvoicing center in Puerto Ricoat a transfer price of $100 per unit.
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Income Taxes andIncome Taxes and
rans er r c ngrans er r c ng
Reinvoicing center in Puerto Rico, 0% tax rate
$100 transfers title of component to U.S. cost =$100
=transfer price of $200 per unit.
Action Tax ImpactAction Tax Impact
U.S. subsidiary sells a component 35% tax rateto external company at $200 each. $200 revenue
cost = $0
Taxes paid = $0
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methods that approximate -
in the order of preference):
Comparable uncontrolled price method
esa e pr ce me o Cost- lus method
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Penetapan Transfer Pricing pada MNCPenetapan Transfer Pricing pada MNC
Metode penetapan harga transfer yang mendekatiharga pasar yang diakui oleh Internal Revenues
.
Comparable uncontrolledprice method
Resale price method
Cost plus method
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Penetapan Transfer Pricing pada MNCPenetapan Transfer Pricing pada MNC
Menggunakan Market Price
uncontrolled price
method
Sales price received by
reseller less markuResale price method
mpy e cos asetransfer price
Cost plus method
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Pembahasan Problem 18-25Pembahasan Problem 18-25
1 Perusahaan memenuhi
penggunaan comparable
uncontrolled price methodkarena harga pasar di AS
e a u
Market Price $10
Add : Landing Cost 2.5
Less : Avoidable Commissions & Advertising 0.5Transfer Pricing $12
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Pembahasan Problem 18-25Pembahasan Problem 18-25
1 Lanjutan
ditetapkan sebesar $11.70 lebih
rendah dari harga pasar di Amerika
yang telah disesuaikan ($12), makaIRS akan mempermasalahkan
persoalan tersebut karena kurang dariharga pasar yang disesuaikan.
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Pembahasan Problem 18-25Pembahasan Problem 18-25
2 Penggunaan
Resale Price = Cost + 0,25 (Resale Price)
$8 = Cost + 0,25 ($8)Cost = $8-$2
Cost = $6
Transfer Pricing = $6 + Landing CostTransfer Pricing = $6 + 1.2
rans er r c ng = .
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Pembahasan Problem 18-25Pembahasan Problem 18-25
2 Lanjutan
Perusahaan seharusnya
mentransfer dengan harga transferlebih t inggi dari $7.2, karena
apabila perusahaan tetapmentransfer dengan harga transfer
$4.5 maka hal ini akan
harga transfer yang ditetapkanlebih rendah dari harga yang
disesuaikan
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Pembahasan Problem 18-25Pembahasan Problem 18-25
3 Minimum Price = $6 + $2 - $1.25
= $6.75
Maximum Price = $12
Transfer Pricing = $12 + Landing Cost - Avoidable marketing cost
= - .
Transfer Pricing = $12.75
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BEBERAPA CONTOH KASUS DI INDONESIABEBERAPA CONTOH KASUS DI INDONESIA
22 PT ADARO ENERGY
33
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100 120
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USA HK SG
100 200 300
400
PT ADARO ENERGY
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PT ADARO ENERGY
1 EXPOR BATU BARAXPOR BATU BARA2 ADARO COALTRADEDARO COALTRADE3 HARGA $ 32/TON >< $ 97/TONARGA $ 32/TON >< $ 97/TON
4 ROYALTY 13,5 % DAN PPHOYALTY 13,5 % DAN PPH5 OKTOBER 2007-AWAL 2008KTOBER 2007-AWAL 2008
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ASIAN AGRI GROUP
EKSPOR CPO
KERUGIAN NEGARA 1,3 TRILYUN
GAMBARAN UMUM PERPAJAKANGAMBARAN UMUM PERPAJAKAN
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GAMBARAN UMUM PERPAJAKANGAMBARAN UMUM PERPAJAKAN
Ps 18 UU no 17 tahun2000 (PPh)
Kepmenkeu 545/KMK.04/2000
TRANSFERTRANSFER
PRICINGPRICING
-
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Questions to Ask Concerning Ethics in
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Questions to Ask Concerning Ethics in
the International Environment
Is the action right legally?
Is the action right morally?
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