Research On Tax Planning And Taxation System In M&A In China

With the global economic integration, fierce competition has been going on within the whole global economic market. In order to stand up to the intense competition, Chinese enterprises should firstly be restructured in terms of organization. Merger and acquisition (M&A) is undoubtedly the most significant means of enterprise reorganization.Meanwhile, tax planning plays a decisive role for achieving the anticipatory financial goals. On one hand, it may greatly change the organizational structure, the financial position and even the legal relationship and influence the development in the future. So enterprises have the motivation to do tax planning. On other hand, the M&A is an important way to adjust the industrial structure; to improve the governance structure of the companies and to develop the business of the companies .It is crucial to the economy of the whole country.Taxation system is the prime law environment to develop the enterprise M&A market, the necessary outside condition to successfully operate the enterprise M&A market. Because of the short developing period of domestic enterprise merge and acquisitions market, the enterprise merger and acquisitions policy and status greatly drop behind the society's development. The enterprise M&A market is under development because of the undeveloped economic environment. Then it is an urgent issue to adjust the capital market to improve enterprise M&A environment.The paper is made up of 5 chapters. In the introduction, it introduces the background and the studying task, and then show the outline of the whole article; Chapter 1: Basing on the basic concept, this chapter introduces the concept of M&A and tax planning, the relation of them and the importance of tax planning in M&A; Chapter2: It introduces the current taxation policy in China and lays the foundation for the continuing chapters; Chapter 3: Introducing methods of tax planning in M&A with relating examples; Chapter 4: It points out some loopholes in current taxation policy about M&A in China. Chapter 5: It gives choices of perfecting the macroscopic taxation policy about M&A in China.