International Tax Competition: Coordination And Route Choice

Under the background of economic globalization, the international flow of economic factors is continuously strengthened. Countries in the world are trying effort to attract such ambulatory factors as capital and technology with taxation. International tax competition is becoming fierce. The non-moderate competition is harmful, not only for the country itself, but also for the taxation principle of fairness, international tax coordination is essential. This paper analyses the relationship between international tax competition and coordination, and then puts forward an concept of "coordinated international tax competition". Based on an economic game model, it makes a research on the mechanism and route of this ideal competition mode, and finally discusses China's strategy in the international tax competition. The conclusions of this paper are as follows, the coordinated international tax competition is an ideal mode for tax competition, the routes for developing countries and developed countries to achieve such mode are different, as for China, it should adopt a "progressive optimization" strategy during its participation in the international tax competition.That is, optimize the FDI bring-in pattern in the first stage, and then optimize its tax competition relationships with other countries.