A Comparative Study On The Income Tax System Of M & A Between Chinese And American Enterprises

In recent years, as the development of China’s economy and the enhancement of Chinese enterprises, more and more mergers and acquisitions appear home and abroad. In a series of tax practice, China has gradually established a relatively complete M&A tax system. But there are still some problems and deficiencies, which are not conducive to M&A transactions and long-term development of economy. In contrast, the US Federal M&A Tax has formed clear value orientation of legislations and specific provisions after ninety years of development. Therefore, comparing American mergers and acquisitions income tax system, drawing on the experience of the United States, and thus improving our M&A tax system of our country have important theoretical and practical significance.There are five chapters in this paper, among which the introduction is the first part. It starts from the background and significance, literature studies, research ideas and methods, innovation and disadvantages of the paper, and finally ends with the structural arrangement. The second chapter first analyzes the basic tax questions related to this issue, next introduces American and Chinese income tax system on mergers and acquisitions macroscopically.And then specific comparisons are made about the tax-free M&A and taxable M&A in the third and fourth chapter. The third chapter is the focus of this paper. Its first section introduces the common rules,the provisions and tax treatment of the tax-free M&A in the United States. The second section introduces the corresponding rules in China, and points out some problems and defects in the same time. The third section makes comparative study. The fourth chapter compares taxable M&A with similar logic.The last chapter is the conclusion and recommendations herein. By learning from the American experience and combining with the actual situation in China, it proposes three recommendations separately about expanding the type of tax-free M&A, improving specific rules and other related rules in order to improve M&A taxation.