The Study Of Corporate Income Tax On China’s Overseas Merger And Acquisition

In recent years, affected by the global financial crisis, more andmore enterprises in China are looking on the overseas market and activelyparticipating in overseas mergers and acquisitions, achieving industrialstructure adjustment and industrial upgrading, and improvingcompetitiveness in international markets. Tax benefits are not the mainreason for M&A, but the tax cost is the important problem whichtransaction entities have to consider. As an important tool of nationalmacro-control, taxation can effectively promote the optimal allocation ofthe various types of economic resources in different economic entitiesand between different regions. Based on the specification andeffectiveness of tax policy and under the grim situation of overseasmergers and acquisitions of Chinese enterprises facing many challenges,to play the regulatory and guiding role of taxation better is not only whattax functions required but can also promote the realization of new era of national development goals of opening up.In this thesis, based on the development of the legal, regulations onthe company’s overseas M&A process, as well as China’s tax policy inthe post-merger operating requirements are introduced. The detaileddescription contains three parts: the tax treatment in different mergers andacquisitions, anti-avoidance policy, and tax credits policy. Finally, severalsuggestions on improving tax policy on overseas mergers andacquisitions are given, concerning the following aspects: the system oftax credits, tax agreements and collection and management aspects of taxpolicy. It is hoped that the further development of tax policy can escortthe overseas mergers and acquisitions of domestic enterprises and speedup the process of internationalization of China’s economy.