Research On Chinese Tax Law System Of The Mergers&Acquisitions

Mergers&Acquisitions is one of the common ways enterprises take to expand the business for scale-achievement, to increase market competitiveness. It is in line with the national policy to upgrade the industrial structure and benefit economic development, and thus it should be encouraged and supported by the country. Taxation is one of the important costs of M&A, and any taxation changes will be a great impact on the enterprise merger decisions. After nearly a century, of development, the United States have formed a relatively complete tax legal system of corporate mergers and acquisitions, which regulates and promotes the development of the M&A market. There’s a short and rapid development time in Chinese M&A market. But China’s current tax laws system regulating mergers and acquisitions is not perfect, lags behind the development of mergers and acquisitions and restrict the healthy development of China’s M&A market.In the first part, I propose some problems of M&A tax law system by analyzing current M&A tax law system’s legislative process and legislative status, try to answer the reasons which lead to these problems and analyze the negative impact of this tax law system. In the second part, I draw a brief introduction of M&A tax law system of several countries and then point out that the United States has a typical M&A tax reference and make a specific description of the U.S. M&A tax law system. In the last part, I propose some principles which should be followed when reconstructing the M&A tax legal system of China, and then put forward recommendations to improve specific system and related systems.