Study On Income Tax Planning In Mergers And Acguisitions

As an important form of enterprise capital operation, mergers and acquisitions plays an important role in the development of market economy. Enterprises can become greater competitive and achieve the strategic objectives of the enterprise by M&A.Taxes cannot be ignored in the decision-making and implementation of M&A because of the important impact in micro-enterprise economics. Since2006, China’s tax system began a new round of reforms. From the new Enterprise Income Tax Law to Income tax issues on corporate restructuring business, the income tax policy about M&A has become more comprehensive and unified.According to different modes of M&A, income tax policy puts forward some new rules and regulations. Enterprises confront more new requirements, tending to bear large number of income tax burdens. So it is necessary to study on M&A income tax issues and tax planning in order to lower the income tax cost, thereby increasing the value of M&A.This article selects income tax planning in M&A to study, which based on the tax planning and other related theories, analyzing the current guiding principles and specific tax regulations of M&A income tax policy, then from the different angles of the M&A mode, put forward relevant tax planning, providing some reference for enterprises.The article is divided into four parts. The first chapter introduces the practical significance of income tax planning in M&A and recent research about it. The second chapter introduces the concept of M&A and tax planning, explores the relationship of M&A and income tax planning and emphasizes on the importance of the tax planning in M&A. The third chapter tries to sort out the every income tax rule about M&A, studies the different tax planning schemes and summarizes the tax planning ideas. The last chapter presents a comprehensive case study, analyzes different tax costs of the program, and then proposes some tax planning advice and inspiration.