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Abstract – This study aims to examine whether tunneling incentives and bonus mechanisms affect the companys decision to transfer pricing. This study uses a qualitative approach and the research sample used in this study is manufacturing companies listed on the Indonesia Stock Exchange (BEI) in 2012 until 2018, amounting to 210 companies where the determination of the use of these companies is determined by the purposive sampling method. The data used in this study are secondary data and logistic regression analyzed with software Eviews 9. The results of this study indicate that tunneling incentives have a positive effect on the companys decision to transfer pricing, and the bonus mechanism has a negative effect on the companys decision to transfer pricing. The coefficient of determination is 0.332. This result shows that 33.2% of transfer pricing is influenced by tunneling incentives and bonus mechanisms. While the rest is influenced by variables outside of tunneling incentives and bonus mechanisms.