Research On Tax Planning In Enterprise Merger And Acquisition In China Under The New Enterprise Income Tax Law

Under the influence of the wave of M&A around the world, M&A in China has became an important way of economic expansion to Chinese enterprises after nearly three decades of development. On the one hand, from target selection to construction and implementation of enterprise merger and acquisition programs, tax issues, especially the income tax problem, exist in the whole process of enterprise merger and acquisition; On the other hand, the tax burden will have a direct impact on the overall economic interests of enterprise. So since tax planning was introduced into China in the nineties last century, it has been gradually adopted by Chinese enterprises as a favorable means to reduce tax burden of enterprise merger and acquisition and maximize the value in enterprises. The new Enterprise Income Tax Law formally implemented in January 1, 2008, there are a lot of differences between the old and the new policy which creates new opportunities and challenges for enterprise income tax planning.Based on the research methods of comparative analysis, qualitative analysis, case studies and so on, this paper expounds the theory which related to enterprise merger and acquisition and tax planning, and studies the application of Tax Planning to enterprise merger and acquisition in China, by analyzing the various tax-related questions in the process of enterprise merger and acquisition and aiming at the changes under the related policy of new Enterprise Income Tax Law, and points out the problem that corporate should pay attention to when tax planning in enterprise merger and acquisition. It also provides a reference to set a proper tax planning concepts in enterprise merger and acquisition, reduce tax-related risks, implementation the maximize enterprise value really.