Is There Tax Competition in ASEAN?

As a regional group, the Association of Southeast Asian Nations (ASEAN) wants to enhance its collective competitiveness to attract foreign capital. At an individual country level, each member country offers incentives to encourage foreign investors. These two interests often conflict and, in any event, this article demonstrates that, although there has been a significant decrease in statutory and effective tax rates in recent years, tax competition in ASEAN is not clearly evident.