Research On Tax Planning Of M & A In China

As the world wave of mergers and acquisitions appear constantly, following the era trend, China’s enterprises use mergers and acquisitions to expand market share, enhance enterprise competitiveness, realize the mergers and acquisitions both sides "win-win" situation. In addition, reducing the tax burden becomes the factors that cannot be ignored in mergers and acquisitions. Through reasonable tax planning, optimizing tax matters in mergers and acquisitions, reduce tax cost, realize the enterprise benefit maximization.In this paper, our M & A activity as the starting point, research mergers and acquisitions and tax planning theoretical knowledge and practical experience. our tax policy as the yardstick, combining with the tax planning and process of M & A, explore merger process in all aspects of tax planning, is intended to design a rational and effective tax planning schemes, guide specifications of mergers and acquisitions activity, lawful conduct, promote healthy, long-term development.The paper uses the theoretical research, investigation and analysis, contrastive analysis, empirical study, combined with scientific research about tax planning of enterprise M&A at home and abroad, as well as the concrete case to carry on the detailed analysis and demonstration. According to enterprise merger and acquisition process and steps of tax planning, combined with the actual operability, tax planning can be divided into the following main areas: Firstly, acquisition targets to choose of tax planning; Secondly, the payment option of tax planning in M & A; Thirdly, financing choice of tax planning in M & A; Fourthly, accounting methods of tax planning in M & A; Fifthly, tax planning of merger integration. Each link of the tax planning points, and therefore needs the enterprise flexible tax policy, make full use of tax incentives for reasonable planning. At the end of the paper with specific cases demonstrate the operational planning methods in mergers and acquisitions. Meanwhile, the paper also stressed, in M & A activity, in addition to considering the tax factors in M & A process, planning for non-tax factors should also be balanced, so that the overall layout, to make tax planning scheme is more suitable for the development of enterprises.Through the analysis of this paper shows that: tax planning is of great strategic significance for mergers and acquisitions activity, companies through tax planning, can effectively reduce the cost and enhance the vitality of enterprise development.