The Research On Tax Planning Of Enterprise Merger And Acquisition In China

With the continuous development of market-economy and the deepening of economic globalization, M&A is becoming the main way of expanding and rapid development for enterprises.It is also one of the important ways of rational allocation of market resources. Our government has also introduced some preferential policy actively to encourage enterprises to carry out M&A. At the same time, due to the continuous development of market economy and the complexity of the tax system, relevant government departments are modifing and correcting some tax policy which enterprises should be familiar with and understand, as well as scientifically evaluated and summarized new suitable for the development of the enterprise income tax tax planning ideas. However, due to the enterprise of the related tax policy and laws and regulations apply to full and accurate enough, cause in the process of mergers and acquisitions, M&A tax did not realize the rationalization of related companies to cut, or there are extra tax costs and potential tax risks.This paper studies tax planning in the process of M&A in China, mainly focusing on the planning of enterprise income tax. The first section covers a detailed introduction of theoretical knowledge of M&A and enterprise income tax. The second part quotes recent M&A cases from China Investment Website and summarizes common tax planning strategies used by corporates within the border of China by finding the existing problems and attributes. Lastly, plausible and feasible solutions will be put up according to preceding section.This paper is written for the purpose of facilitating M&A by using tax planning and making such a positive impact of M&A as cost reduction and the promotion of healthier growth of merged corporations.Research significance of this article mainly is to strengthen the related enterprise M&A in the tax planning in the process of consciousness.It also encourage enterprises' head or tax professionals actively to learn and master relevant tax laws and tax policies and turn it into specific tax planning scheme to develop the enterprise income tax.In the implementation of specific solution, They also need to pay close attention to the change of external environment and timely initiative to update and change the tax planning ideas to reduce the cost of enterprise merger and acquisition and to promote the consolidation and development of the enterprise after the merger.