In the face of global tax reforms to tackle base erosion and profit shifting (BEPS), the most important policy response for Asean economies is to enhance their non-tax competitiveness in attracting foreign investment, analysts from Asean+3 Macroeconomic Research Office (AMRO) said in a note on Tuesday.
Proposed changes on tax jurisdiction are likely to benefit populous countries with more, while a global minimum tax rate might compromise the attractiveness of most Asean countries, said AMRO.
In July, the Group of 20 (G20) and Organisation of Economic Co-operation and Development (OECD) inclusive framework on BEPS, which involves 140 economies, released a statement on global tax reform.
Out of Asean+3, Cambodia, Laos, Myanmar, and the Philippines are not participants of the inclusive framework, while the +3 economies of China, Japan, and South Korea are.
The statement has two pillars - first, a multinational enterprise (MNE) may be taxed by a jurisdiction in which it generates revenue, even if it is incorporated elsewhere; second, there is a proposed global minimum tax rate of 15 per cent for large MNEs.
The OECD estimates that the first pillar could reallocate taxing rights on more than US$100 billion of profit, while the second could raise an additional US$150 billion in global tax revenues each year.
Source: BusinessTimes
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<p>Time: November 2025<br /> By: WTO and International Trade Group, Legal Department – VCCI</p>
