The Effect Of Corporate Income Tax Breaks On Foreign Mergers And Acquisitions

China has joined WTO for 15 years.As economic globalization develops in depth,Chinese economy has grown rapidly during these years.And the pattern of economic development gradually transformed from the simple "bringing in" strategy to a mature "going out" strategy.The drive of macro environment and the growth of internal demand,as well as the implementation of "The Belt and Road Initiatives",all play a positive role in promoting domestic and international economic linkage.In recent years,our country enterprises' intense activities in foreign mergers and acquisitions have set off a "overseas mergers and acquisitions" spree.The enterprise overseas merger and acquisition is affected by many factors.Although the tax is not the main reason,the tax cost is the question which the transaction subjects must consider.Therefore,one important part which our enterprises have to consider when carrying out M&A transactions is how to maximize the use of current tax incentives to reduce the cost of overseas mergers and acquisitions and bring more after-tax profits.Tax policy,as an important means of macroeconomic regulation and control,can guide the market to optimize allocation of resources reasonably.Based on the importance of tax policy,especially the enterprise income tax which is the most closely related to mergers and acquisitions,as well as the various challenges Chinese enterprises face in overseas mergers and acquisitions,to further improve the enterprise income tax system can not only better achieve the functions of tax revenue,but also promote China's enterprises to "go out" smoothly.This article mainly adopts the research method of "theory + model".It elaborates the relevant provisions of enterprise income tax in our country in the process of overseas mergers and acquisitions and after that.Based on the researches of foreign countries,it demonstrates the influence of enterprise income tax on the quantity and amount of overseas mergers and acquisitionsthrough the derivation of the model,and further discusses the tax incentive effect of tax exemption,deduction and credit method on business investments by formula.Finally,combining with the theory and the present situation of our country,this article puts forward some suggestions on improving the enterprise income tax system,improving the tax collection and management service and strengthening the tax cooperation among the countries,which will offer help to Chinese enterprises in overseas mergers and acquisitions,andprovide tax policy support for China's "going out" enterprises.