The Application Of Equity Payin Merger And Acquisition

Company merger and acquisition is a fairly complex process of property right transaction, also is an optimization of capital stock in a very effective way, so merger and acquisition has been widely used in the economic life, of course, there are so many methods of the merger and acquisition trading. From the perspective of a single enterprise, through the assets reorganization, the enterprise can make assets expanded rapidly, and at the same time, big companies can be formed with different ownership, trans-regional, cross-industry, and the economies of scale and market competitiveness significantly present; Analysis from the perspective of the whole society, if the companies pay attention to the connotation development and ignore the denotation expansion in the long-term, this may lead to repetitive construction and cause the waste of social resources. Through restructuring, the enterprise can realize recombination and rational flow of factors of production, optimize the structure of industry and improve the quality of economic operation and the efficiency of asset allocation.In the past 20 years, China's capital market developed quickly, and the diversity of the development also increased. In order to the growth of the companies, more and more listed companies choose the merger and acquisition. And in the process, tax factors become the very important factor in the merger and acquisition. The companies also need to pay attention to tax policy changes related to the capital market.In this paper, on the basis of introduction about the mergers and acquisitions in the tax law of China and the United States, I analyze the tax planning methods of our country, and on the basis of the tax planning methods, I use equity paying(in mergers and acquisitions) as a breakthrough point, expounds the pay equity method in the enterprise mergers and acquisitions. Analysis of two types of equity to pay, cash and pattern, more clearly explains tax policies of merger and acquisition. In the way of case, I discussed the actual application of equity paying, and summed up the advantages of equity paying of current merger, acquisition and reorganization and the imperfections of existing tax system, and put forward the corresponding suggestions.