| This research examines the transfer pricing analysis and method of payment with the leading and lagging at the XYZ Company for the year 2007-2011. XYZ Group is a multinational company with headquarters in one of the countries in continental Europe, is ranked 143 in Forbes magazine (2010). The company main activities are in electrical technology and automation process. Its Subsidiaries is in more than 100 countries worldwide. Division of the company is divided into five main divisions. This research aims to quantify the loss suffered due to the application of transfer pricing and profits received by the company for determination of leading and lagging method. Products covered in this research are Power Transformers. Vending companies in Singapore and corporate buyers in Indonesia, as a comparison the writer also compares the selling price with the buyer company in Thailand. Over the past 5 years there were 9 times purchase and sales transactions between companies in Indonesia and Singapore. For the analysis of leading and lagging, the authors using interest rate and bank loan rates. Payment period is 60 days. For Leading and lagging analysis, the writer used 30 and 90 days of interest rates and bank loan rates The results for the year 2007-2011 showed that companies in Singapore set a high selling price for buyers in Indonesia and Thailand. When viewed from the tax rate, the tax rate in Indonesia is higher than Singapore and the tax rates in Thailand is higher than Indonesia. In the analysis of leading and lagging, the company should use interest differential before chose which was the best mechanism, is it leading or lagging or even paying on time. |