Policy analysis // Perkumpulan PRAKARSA






Anticipating Tax War in the ASEAN Economic Lntegration Era: Competition Might Be Worse Off Following the ASEAN Economic Community
August 2015
Setyo Budiantoro

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Anticipating Tax War in the ASEAN Economic Lntegration Era: Competition Might Be Worse Off Following the ASEAN Economic Community Image
Abstract

Highlights :

1. Excessive tax incentives could potentially trigger “tax war” between neighboring countries.
2. Integration of the ASEAN Economic Community (AEC) could potentially trigger “race to the bottom”, as in the European Union and African regions.
3. Agreement among ASEAN countries'governments is crucial in order to keep the tax rate at a reasonable level that does not inflict to lose-lose situation for all ASEAN countries.

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