China - ASEAN Free Trade Area Tax Coordination Deepen The Study

The past decade is called ‘golden decade’ for the high speed development ofChina-ASEAN Free Trade Area which is short for CAFTA. Every member of CAFTAis confident of its development in the future. The Framework Agreement, theAgreement on Trade in Goods of the Framework Agreement, the Agreement on Tradein Services of the Framework Agreement and the Agreement on Trade in investmentof the Framework Agreement have laid a solid foundation for the economicdevelopment of CAFTA. The development CAFTA have made many achievements:by the end of2012, the amount of bilateral trade volume is$400billion,6timeshigher than a decade ago. Until the first half of2013, the total investment is more than$30billion,2times higher than a decade ago. The development trend of CAFTA isvery well. Both from the perspective of China and ASEAN, it is necessary to strengththe cooperation in economic. In particular, in terms of our country, the development ofCAFTA also has important strategic significance to improve China’s foreign openness.Tax revenue, as an important means of regulating economy, is the symbol of anational sovereignty. The differences in tax system and excessive tax competitionbetween China and ASEAN will hinder the development of CAFTA. In order to meetthe requirements of deepening cooperation, China and ASEAN should removedbarriers on tax as soon as possible. At present, all the members of CAFTA has madepart of achievements on tax coordination. But the current situation is not very perfect.Therefore, it is necessary to continue studying the tax coordination between CAFTA.This article mainly includes six parts: the introduction, the basis of deepening taxcoordination in CAFTA, tax system comparative analysis between China and ASEAN,achievements and difficulties about tax coordination in CAFTA, the experience of taxcoordination from the UN and suggestions to promote tax coordination betweenChina and CAFTA. In this article, comparative analysis method and historical analysismethod have been mainly adopted to study the similarities and differences of taxsystem between China and ASEAN and achievements CAFTA has got in taxcoordination According to the current situation of CAFTA and the situation of taxcoordination between China and ASEAN, this paper has studied the tax coordinationsystematically.