The Research Of Tax Competition Problems About ASWAN-China Free Trade Area

Under the background of economic globalization, international capital mobility unceasing enhancement, the world of capital, technology and liquidity production elements of the increasingly fierce competition, the international tax increasing competition. Started in the 1980s tax cuts wave continues to develop, worldwide after we enter the new century, many developed countries and have embarked on implementation of basic tax reform, in order to improve the competitiveness of the tax system. On the other hand, in the face of international tax competition the challenges, after the middle 1990's, The OECD for tax havens and its member countries within the preferential tax "harmful" launched "harmful-tax" operations, tries to international tax harmonisation to curb tax competition; Meanwhile, the European interior also on harmful-tax and seeking and promote the coordination between the idiom of tax efforts. Competition or coordination, is made in the world economic globalization has to choose.On January 1, 2010, ASEAN-China Free Trade Area was established, marks China and ASEAN promotion for the world's third largest free trade area, between the two sides of the commodity, personnel, services, capital four elements will speed up flow. The close economic and trade contacts between both parties, aggravate the market together. On the one hand, bilateral trade exists mutual. By the end of 2009, China and ASEAN trade volume 2130.1 billion dollars, up to ten ASEAN region of our country as the total amount of investment in China 247 million dollars, accounting for the proportion of the total absorption of FDI for 5.86%; In addition, the Chinese enterprises to the total investment of the ten asean countries by double trend, also become 99.5 billion dollars in the 2007 direct jump 180.2 billion dollars in the 2009. On the other hand, bilateral trade there is a rival. In the 1980s, Thailand, Malaysia, Indonesia, the Philippines and other east Asian countries have taken "foreign domination" export-oriented economic development strategy, "foreign domination" export-oriented economic development strategy, which is driven by foreign capital inflow in foreign trade development, driven in foreign investment, to promote domestic investment to increase economic growth. Foreign become the main driving force of economic growth. The main force the economic growth upon foreign body. Meanwhile, open its domestic commodity markets and financial markets. Finally make most of China's investment flows should flow to the asean. Eventually, trade competition on full performance to tax competition. Bilateral through the big tax cuts, expand the scope of the preferential tax policy, development measures such as tax competes to attract the multinational capital. Various tax competition means in effect at the same time, also received brings certain harm, namely effective resource configuration, weaken the distortion of public products provide the horizontal, erosion countries tax base, etc. In order to deal with bilateral tax competition, promoting the coordinated economic development, accelerate the construction of China and asean free trade area. Should carry out the basic tax reform, improve tax competition ability; Perfect tax havens, maintain tax measures tax authority, Optimizing tax harmonisation policy, avoid tax competition; Strengthening tax collection cooperation, protect tax benefits.