Research On Tax Coordination In China-Asean Economic Integration

With the development of the economic globalization and regional integration, goods, services, capital, technology and labor, and other elements in the worldwide have been flowed fluently, resource allocation has been optimized. However, with the growing economic links around countries, there are a large variety of obstacles with the mobility of these factors, of which the tax factor is an important one. As the most effective way to eliminate tax obstacles is tax coordination, the research of tax coordination has been given attention.In2010, as the China—ASEAN Free Trade Area had been established, the development of regional economic integration was entering a new era. It brought new opportunities to China and other ASEAN countries in economic development, but the arrival of the opportunities is also accompanied by problems. The China-ASEAN economic integration encountered some problems about the Tax Barriers, namely the obvious tax differences within the region and the increasingly fierce tax competition with each other. In this background, the paper develops a study of tax coordination in the process of China-ASEAN economic integration.Firstly, we will do a study on the basic theory of international tax coordination, including the meaning and types of the International Tax Coordination, contents and forms, as well as the relationships between tax harmonization and tax competition etc, and explore the various stages of the regional economic integration on this basis, which laid a theoretical foundation for the study. Secondly, the article offers a comprehensive analysis of the Tax Coordination in the China-ASEAN economic integration, including the results achieved by the necessity of tax coordination, the problems and the constraints of tax coordination, and tells a true story of status and difficulties of the regional tax coordination. By analyzing the differences of the tax system between China and ASEAN countries, this paper identifies a clear focus and direction of tax coordination. Thirdly, in order to learn from the experience of the EU tax coordination, this paper studies the tax coordination of Economic Integration of EU, and researches the EU tax coordination process and experience from three levels, namely the tax system, the tax administration and the percentage of compatibility of development phases of regional economy, on this basis, discusses the enlightenment of the EU tax coordination combined with the practical situation of China-ASEAN economic integration. Finally, according to the practical situation in the area, the article puts forward the recommendations of the Tax Coordination in the China-ASEAN economic integration, including the basic principles of the regional tax coordination and some specific tax system and tax administration coordination measures, and also including the overall arrangement of tax coordination of for the current phase and tax coordination safeguards for tax coordination.