The Research Of Tax Planning About M&A

With the further development of social economy, we have already entered a new economic era which is taking network and Hi-Tech as the symbol. The combination of new economic and traditional industry is an irresistible trend. As far as domestic enterprises are concerned, it is inevitable that they catch opportunities to develop by merger & acquisition (M&A) in this era. Though tax is not the direct aim in the M&A, it should not be overlooked in the course of decision-making and implement. Enterprises should make use of the tax policies and the leverage to lighten the tax burden and reduce the cost. It can earn the most benefit.Tax planning is that in permit of the taxation laws the taxpayer chooses the best project to make the enterprise value maximum by planning and arranging the operating and financing in advance. The tax planning in M&A is an advanced and reasonable plan to choose the object and finance. It can help enterprises reduce the cost and achieve the goal of maximal benefit. If an enterprise's tax planning is implemented successfully, it can enjoy the benefit of the taxation. In opposite, if an enterprise ignores the tax problem, it may bring a lot of troubles, even make the enterprise get into a "trap". The decision-making should pay attention to tax planning.This paper discusses the tax planning in domestic enterprises M&A by interpreting theory with practice. In the basis of researching the theory of M&A and tax planning, the paper analyzes the characters of M&A and the involved tax policies. It mainly researches the diversity of the tax policies in different areas and it also clarified the feasibility of tax planning in M&A. As follows, this paper discusses the main thought and concrete methods in M&A of domestic enterprises by an example. This example encloses four aspects, such as the chosen of the object, the contribution, the financing and accountant and so on. It also researches the risk of tax planning in the M&A and the way of avoidance.This paper tries to put forward the thought and a method of tax planning in M&A. It also tries to lead the company make use of the revenue policies and the leverage, update the conception of tax , reduce the cost scientifically and reasonably, achieve the maximal benefit.