Luxembourg

Details

  • Service: Tax
  • Type: Business and industry issue, KPMG information, Regulatory update
  • Date: 6/24/2014

Contact

Miriam Keusen
Director
Tel. +352 22 51 51 5566

miriam.keusen@kpmg.lu

The ASEAN Economic Community 2015 

The Association of Southeast Asian Nations (ASEAN), including Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam, is rapidly approaching a new milestone; the implementation of the ASEAN Economic Community (AEC) at the end of 2015.

 

The AEC fundamental freedoms are becoming a point of increased focus for international business. The AEC sets the foundations of a single market and production base allowing for the free movement of goods, services, investment, capital and skilled labor. In addition, the ten member countries of the ASEAN are aiming at jointly realizing the development of a competition policy, the protection of intellectual property, the facilitation of e-commerce, and the introduction of a more comprehensive investment protection and dispute resolution system.

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The AEC is expected to have far-reaching economic consequences, by significantly promoting intra-ASEAN trade and investment and strengthening the global importance of the ASEAN as an economic block. Apart from the reduction of tariffs, ASEAN tax coordination is limited to the elimination of certain withholding taxes and the completion of the network of double tax treaties among all ASEAN countries. This leaves increased tax competition between ASEAN countries in order to attract foreign direct investment promoting further regional and global integration of businesses.


In this rapidly changing environment, global businesses need to closely monitor the ASEAN developments and consider their trade and investment opportunities to further optimize their global supply chains.

 

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