Research On Tax Reorganization Of Enterprises

With the entrance of China’s economic growth into the "new normal", mergers and reorganizations of enterprises play an increasingly significant role in resolving excess production capacity and facilitating optimization and adjustment of economic structure. In the process of reorganizations, taxes, especially enterprise income tax involved in reorganizations, are important costs for mergers and reorganizations of enterprises, which affect enterprises’choices of mergers and reorganizations methods.In China, taxes involved in reorganizations of enterprises include enterprise income tax, individual income tax, business tax, land value appreciation tax, deed tax, stamp tax, etc. Among all the taxes involved in reorganizations, enterprise income tax is the most complex tax confronting with the most problems.Therefore, this article lays the emphasis of research on taxes involved in reorganizations of enterprises on enterprise income tax.Since the implement of the new Enterprise Income Tax Law in 2008, China has adequately learned from and drawn on foreign experience, systematically issued standard for the treatment of enterprise income tax in mergers and reorganizations of enterprises and changed the situation of different tax policies towards reorganizations of domestic and foreign enterprises in the past, thus realizing fair tax environment and vastly facilitating mergers and reorganizations of Chinese enterprises. However, as a complete system of tax policies towards reorganizations of enterprises has not been established in China, tax policies towards reorganizations are not timely supplemented and improved. As time goes on, existing tax policies towards reorganizations increasingly fail to fit in with more and more complex practices of enterprise reorganization, resulting in enormous uncertainty risks for tax treatment of normal mergers and reorganizations of enterprises day by day. Therefore, it is badly in need of supplement and improvement.In terms of research method, this article mainly adopts the method of comparative research. Based on understanding and knowing concepts of enterprise reorganization and related tax theories, on the one hand, this article lengthways and contrastively analyzes and researches the evolution of tax policies towards reorganization in China. On the other hand, this article draws on the experience of tax policies towards reorganization in foreign developed countries and analyzes the main problems existing in current tax policies towards reorganization in China through comparing such policies with the policies in China and combining certain cases.At last, based on related tax theories, constructive and practical suggestions for tax policies towards enterprise reorganization in China on overall level, technology level and implementation level are put forward regarding the problems of such policies through combining practices and adequately learning the advantages of policies of developed countries.As China did not start to transform into market economic system until 1980s, the time of implementing market economy is not long and enterprise reorganization appears relatively late in China. As a result, it needs time to deepen the understanding on enterprise reorganization in the respect of tax. Therefore, it may take a long time to improve tax policies towards reorganization in China. We should be clearly aware of this fact.With many things to be improved, the most important thing for China’s policies towards reorganization at present is to establish a dynamic perfecting system to deal with increasingly numerous and complicated enterprise reorganization practices.