ASEAN is currently becoming major economic force in Asia, made up of Indonesia,Malaysia, Singapore, Brunei Darussalam, Laos, Philippines, Cambodia, Thailand, Vietnam,and Myanmar. ASEAN countries set a goal to integrate all economic potential throughASEAN Economic community in 2015 in order to make the country members competitivewith the rest of world. Occupied by 600 million population and nominal GDP of USD 2.31trillion, ASEAN provides huge opportunities for the world, especially in the form of tradeand investment. Thus is has to be supported by relevant policies from the respective countrymembers, which is one of them is tax policy. There are two major tax regimes which areworldwide tax regime and territorial tax regime. The main objective of territorial tax regimeis to gain more opportunities abroad by exempting corporate income tax by home countriesfor firms operating abroad, thus capital outflow from a country with territorial tax regime willincrease. The research employs fixed effect panel analysis in 6 major ASEAN countries withobservation period of 15 years. The result reveals that tax regime does not have significantimpact on capital outflow, still, macroeconomic performance becomes major factor for thecapital outflow