Research On Legal Issues Of Income Taxation Of Stock Acquisition In China

Corporate acquisition nowadays are propelled by rapid economic development, which become one of the main ways for Chinese enterprises development under the current market economy situation. Through acquisitions, the company covert its roles from product management to the capital management, adapting to the market economy following the rules of the fittest survival.As the prosperous developing of equity acquisition in China, however, the corresponding tax has set behind the development of the economic activity. Those problem should be handled as soon as possible.The whole article chooses the legal issues of income taxation of stock acquisition in China as the research object, analyzes the legal issues of income taxation of stock acquisition according to the related cases and the regulation of our country current relevant tax laws and regulations, and discusses some deficiencies. This article is composed by six sections.Introduction. In this section,the research background, literature review, research purpose and the innovations in this dissertation are included.And, the chapter one briefly introduces the definition and classification of equity acquisition of China, meanwhile put forward enterprise equity acquisition in China should adhere to three principles: tax statutory principle, tax fairness principle, tax neutrality principle, the essence of taxation principle.The second chapter introduces China’s current legal system equity acquisition tax, China’s current tax law to the specific provisions of the tender offer companies and illustrate the differences between the different taxes treatments under the tax actually paid.The chapter three based on the above discussion and analysis, points out the specific problems of the enterprise acquisitions in our country, and state the space to improve the tax laws and regulations of China. In view of more perfect capital market of American and German, mergers and acquisitions have a long history,so that can provide great reference to China.The Chapter IV Based on the above discussion and analysis, points out the existing tax laws and regulations of corporate equity acquisitions and analyze the problems found, and gives perfect corporate income tax issues of equity acquisition of specific recommendations.And thus we jump to the conclusion.