Taxation Policy Analysis On Enterprise Mergerand Acquisition In China

Enterprise merger and acquisition is an enterprise legal person that based on equality, equivalence paid, other legal person property rights to certain economic mode. It is the essence of property rights transaction, inevitably involves many tax problems. If M&A transactions with tax-free mergers and acquisitions conditions as well as to taxation according to what kind of subjects. In this paper, from the perspective of tax policy, tax coordination in two aspects and the effect of tax planning effect to an in-depth analysis of the tax effect of enterprise merger. Combined with the actual situation of enterprise merger and acquisition in China, the author carried out the analysis on the existing problems in the relevant tax merger, and tax issues to various western countries in mergers and acquisitions involving comparison, thus proposed the reference suggestion for our country enterprise M&a tax policy.In1978, China’s reform and the true meaning of China’s opening up, enterprises gradually expand the autonomy in management, and the ownership and management right is gradually separated, the mergers and acquisitions to improve the state-owned enterprises operating mechanism, make the rational allocation of resources, to make an inventory of assets, to adjust and optimize industrial structure, make the M&A the role is more and more popular with everyone’s concern and attention. In China, the scale of the merger and acquisition activity has just started, however, in our law does not have such perfect tax regulations, merger and acquisition tax imperfections restrict the development of M&A market, hinders the normal operation of the market economy. Especially the division standard of tax-free merger is not clear, and the criterion for distinguishing the taxable mergers and acquisitions is not strict, anti-tax avoidance measures imperfections caused the loss of tax revenue and the tax burden unfair consequences. Therefore, whether in theory or in practice, tax issues, mergers and acquisitions involved has been more and more countries are concerned. The introduction of new enterprise income tax law after having promulgated a number of corporate restructuring on the business income tax policy, is currently applied comparative perfect on the normative documents of enterprise merger and reorganization of the tax treatment, represents the highest level of legislation in the field in china.This paper begins the basic theory in enterprise M&A, has carried on the detailed analysis, the author carried out the analysis and tax of western countries in the enterprise merger and acquisition involves, through to the tax effect of enterprise merger and acquisition in China is described, the enterprise merger and acquisition is important for the development of market economy in china. This paper thinks, the policy system of tax revenue of enterprise merger and acquisition in China has been initially established, but there are also shortcomings in tax system, cannot play a good tax guide and promote the role of enterprise, coupled with government intervention is not conducive to macroeconomic regulation and control of the country.At present, whether domestic or foreign, discussing the merger and acquisition of enterprises can be said to be too numerous to enumerate, the existence of a large number of literature, and their focus of discussion was the same, but the focus of this article is mainly reflected in the following two points: first, we stand at the tax perspective, in-depth analysis of enterprise merger and acquisition, and in depth analysis of the tax effect of enterprise merger, in order to draw significant conclusions. Second, from the western developed countries in enterprise M&A on this issue about the tax treatment, points out the deficiency of our current tax policy, hoping to find the measures to adapt to China’s national conditions.