| During the past 20 years, the development of regional economic integration has gone over the world. Almost one country belongs to some regional economic organization and many countries belong to different regional economic organizations. The aim to the found of regional economic organizations is to get the compared competitive advantage in the world. There is low or zero tax rate in the organizations and flat or different tax rate out of the organizations, so it is the result to make the goods, capital and worker more flowing and make the tax base more elastic. In the closed economy, the tax policy that raises tax revenue maximally brings more and more externality. Some countries attract tax base through decreasing tax revenue or preferential tax so that tax rate is down to the bottom. Though it is not sure that coordination is the means to overcome the negative effects, most of countries take part in the regional tax coordination to avoid tax evasion and be afraid of harmful tax competition.This paper firstly introduces the general theory of international regional tax coordination including the Customs Union (CU) and Free-Trade Areas (FTA), The Mechanism of Regional Tax Coordination and International Regional Tax Coordination Effect, based on putting forward the questions, secondly concludes the process of tax coordination in the regional organizations including European Union (EU), North American Free Trade Area (NAFTA), Association of South East Asian Nations (ASEAN), and others, thirdly includes the general rules and the trends of the regional tax coordination, finally puts forward the suggest that China takes part in the regional tax coordination based on the rules and the trends.The first chapter is the introduce that mainly is composed of motif and significances, literature review and paper structure and main new viewpoints.The second chapter is the theoretical research of international regional tax coordination. Firstly, it analyzed the start of international regional tax coordination that is Customs Union (CU) and Free-Trade Areas (FTA). Generally international tax coordination starts from bilateral tax treaty but regional tax coordination starts from customs union and free-trade areas which difference is whether there is a flat tax rate. The net welfare effect of CU and FTA is the compared result between the trade creation effect and trade diversion effect in the static situation but increasing the trade expansion effect and decreasing-cost effect in the dynamic situation. Secondly, it analyzes the mechanism of regional tax coordination based on the game theory. The mechanism composes of five stages: stable economic environment, compared advantage on the same means, income and cost allocation, coordination means and stages and penalization of breaking the contract. Finally, it analyzed the international regional tax coordination effect that is allocation of resources effect, income distributing effect and economic increment effect.The third chapter is the empirical research on international regional tax coordination for example EU. The VAT coordination made much progress before 1993, but the destination principle has been challenged since 1993. The focus of VAT coordination is on improving the transitional system or selecting a new plan. The company income tax coordination made little progress before the 1990s and some progress after the 1990s due to the changing of tax coordination mechanism. The focus of company income tax coordination is on selecting a new plan and the allocated formula. Post-enlargement European tax coordination has made the coordination more difficult since 2004, because there is a great gap between the old and new number countries.The forth chapter is the empirical research on international regional tax coordination including NAFTA> ASEAN and other organizations. These organizations stand the tariff coordination but tax coordination makes little progress because the difference of the development level, the culture and the history.The fifth chapter concludes the rules and developing stages of regional tax coordination. The rules of regional tax coordination are trends to multi-regional and goose-array-like developments, further ladder-shaped integration, changing of tax coordination mechanism from sturdy to elastic, changing of tax coordination results from focusing on forms to on results, changing of tax coordination trends from inside of the continent to intercontinental tax coordination. The developing stages of regional tax coordiantion include tariff coordination, avoiding double tax, anti-tax evasion, indirect tax coordination, direct tax coordination and unite taxation.The sixth chapter is the choice of Chinese tax policy. Firstly, the selected schemes of Chinese regional tax coordination policy consist of the first domain of Chinese Economic Area, 10+3 Free Trade Area and China- tax heaven treaty; the second domain of China-EU Free Trade Area and China-America Free Trade Area and the third domain of China-Africa Free Trade Area. Secondly, it emphasizes the stages and gains of China-ASEAN Free Trade Area.Following the main new viewpoints:Firstly, the paper concludes the rules and developing stages of regional tax coordination. The rules of regional tax coordination are trends to multi-regional and goose-array-like developments, further ladder-shaped integration, changing of tax coordination mechanism from sturdy to elastic, changing of tax coordination results from focusing on forms to on results, changing of tax coordination trends from inside of the continent to intercontinental tax coordination.Secondly, it analyzes the mechanism of regional tax coordination based on the game theory. The mechanism composes of five stages: stable economic environment, compared advantage on the same means, income and cost allocation, coordination means and stages and penalization of breaking the contract.Thirdly, The developing stages of regional tax coordiantion include tariff coordination, avoiding double tax, anti-tax evasion, indirect tax coordination, direct tax coordination and unite taxation. The double taxation is avoided by means of the foreign credit system, tax treaty and assistance in collection. Tax evasion is avoided by Controlled Foreign Corporation (CFC) tax, transfer pricing taxation, thin capitalization,anti-harmful tax competition and so on. There will be unite taxation with the tax coordination further.Fourthly, the paper emphasizes the steps of Chinese regional tax coordination: selecting negotiators and being ordered, selecting the coordination means and coordination mechanism. The general rules include there being close economic relations, south-north treaty prior to south-south treaty, geographical close not the essential factor, bilateral agreements prior to multilateral agreements and democratic and fair coordination mechanism.Fifthly, the paper decides on the choice of Chinese tax policy. The selected schemes of Chinese regional tax coordination policy consist of the first domain of Chinese Economic Area, 10+3 Free Trade Area and China- tax heaven treaty; the second domain of China-EU Free Trade Area and China-America Free Trade Area and the third domain of China-Africa Free Trade Area. |
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