Research On The Tax Coordination In China-ASEAN Free Trade Area

As the world enters into the stage of economic globalization, economic exchanges become frequent, and many countries have shown obvious characteristics of openness. In this circumstance, tax is no longer limited to the scope of a country. International tax competition has intensified and transnational taxpayers'evasion, tax avoidance activities are more frequent, both of which have a negative impact on the world economy's stability and development.Tax coordination can avoid double taxation, tax evasion and excessive tax competition, so the necessity and importance of the international tax coordination are increasing under the current situation. At present, scholars at home and abroad have studied international tax coordination mainly in the European Union, but shown less concern to China-ASEAN Free Trade Area. The establishment and development of China-ASEAN Free Trade Area will help expand the exchange of the commodity, the service and the capital. It will also play a pivotal role in the world economy. But at the same time, the role of tax barriers has also become more apparent, and has a negative impact on economic exchanges to member states. The countermeasures to solve this problem become a new topic in economic sphere for a period of time. So research on the tax coordination in China-ASEAN Free Trade Area has important theoretical and practical significance.This paper puts forward the necessity of the international tax coordination in China-ASEAN Free Trade Area at first. Then based on the comparison of tax system between China and member nations of ASEAN and the tax coordination experience in EU, the paper puts forward suggestions on tax coordination in China-ASEAN Free Trade Area. Therefore, this paper is divided into five parts to elaborate on this issue. The first part is the analysis of the necessity of tax coordination in China-ASEAN Free Trade Area. Firstly, the paper introduces the theory of international tax coordination, and then discusses the necessity of tax coordination in China-ASEAN Free Trade Area through a model and the demonstrational analysis.The second part is to make a comparison between China and ASEAN member nations' tax system. Firstly, the paper introduces the general situation of China and the member nations' tax system. Secondly, this paper mainly discusses the influence of similarities and differences between the tax systems in China-ASEAN Free Trade Area.The third part is to introduce the tax coordination experience in European Union. Firstly, this paper introduces the tax coordination in EU, and then introduces how to use it in China-ASEAN Free Trade Area.The fourth part is the achievements and problems of tax coordination in China-ASEAN Free Trade Area. Firstly, the paper introduces the present situation of ASEAN, and then mainly introduces the achievements and problems of tax coordination in terms of tariff, the elimination of double taxation and tax collection and management.The fifth part is to discuss the establishment of tax coordination construct in China-ASEAN Free Trade Area. Firstly, the paper puts forward the basic principles of tax coordination for China-ASEAN Free Trade Area. Secondly the paper mainly discusses how to establish the construct of tax coordination.