Globalization has attracted the economists to examine the concept of tax competition. This research is conducted in order to review tax competition in the ASEAN member countries during the period 1990 – 2012 due to corporate tax rate reduction phenomenon. Scope of this research is corporate income tax in six ASEAN member states, namely Indonesia, Malaysia, Philippines, Singapore, Thailand, and Vietnam, which are sufficient to represent ASEAN. This research uses a quantitative methods approach, starting from quantitative descriptive analysis of statutory corporate income tax rate, calculation of the effective rate of corporate income tax – both Effective Marginal Tax Rate (EMTR) and Effective Average Tax Rate (EATR) – based on the Devereux’s formula, and revenue shifting of corporate income tax to other taxes are considered to cover corporate income tax revenue reduction. Based on the result, this research does not find any sufficient evidence regarding indications of tax competition in the ASEAN region.
|Journal||Journal of Applied Economic Sciences|
|Publication status||Published - 2015|
- Effective average tax rate
- Effective marginal tax rate
- Tax competition