Research On Tax Planning For Reorganization Of Enterprises' Merger And Acquisition In China

With the development of global economic integration and the enterprise growing and maturing gradually, merger and acquisition ("M&A") has become a major way through which the enterprises can expand the market shares and enhance their competitive ability. In the M & A transactions all over the world, China's enterprises have changed their attitudes. They participate in the global competitiveness and resources reallocation instead of waiting step by step. In the current financial crisis, China's enterprises are faced with great opportunities and challenges. But the enterprises are responsible for their own profit and loss, and their business purposes are to gain the maximum economic profit. In the M&A processes, the important factor is whether M&A transaction can generate profits and reduce the impact of the tax burden. Therefore, it is extremely important to look for tax saving space of M&A reorganization.The article is divided into six parts. The first, the second and the last part are auxiliary. And the third, fourth, fifth part are the core parts. The main content is as follows:The first part is introduction. It introduces the background, current research at home and abroad, studies purpose, content as well as methods of tax planning of M&A reorganization.The second part includes relative theories of tax planning of M&A reorganization. First, the basic theories of M&A is introduced, including definition, types and restruction processes. Second, the theories of tax planning include meaning principles and methods of tax planning. Finally, tax motivation and the feasibility of tax planning for M&A are analyzed.The third part refers to current situation of tax planning of M&A. First of all, the three waves of M&A are reviewed. Then the influents of new accounting standards, the new tax as well as the financial crisis for M&A and tax planning are analyzed. At last, current tax policies including the turnover tax policies and income tax policies are summarized.The fourth part proposes tax planning programs for the restructuring of China's M&A. Tax planning is divided into five main components according to restructuring process and tax planning steps. First of all, in the M&A processes, the M&A goals are chosen. Secondly, the payments of M&A need planning. Thirdly, the financing ways should be proposed. And then the accounting methods should be considered. Finally, the post-reorganization needs planning. The main points of tax planning in each phase are different. Therefore, we should master tax policies flexibly and make full use of various preferential tax policies to carry out tax planning.The fifth part is the practical application of one case, which is M&A reorganization of JinYu company. The tax planning is accomplished comprehensively.The sixth part is the conclusion of this article.In this paper, the innovation lies in that the three new policies of new accounting standards, new income tax and reformed value-added tax are analyzed. And then new methods and ideas of M&A are put forward.