Research On Corporate Income Tax Policies Of Tax-Free M&As

With the development of the market economy system and the perfection of the modern enterprise system in our country,every enterprise has expanded its scale to meet the increasingly fierce market competition,and the enterprise restructuring has also become an important way of enterprise development.Reshuffle of the enterprises will be affected by many factors,while tax revenue is one of the important factors that affect the reshuffle of the enterprises.The tax[2009]59 firstly put forward the concept of "Tax-free stock purchase",compared with the developed countries,China put forward this concept later,the relevant laws and regulations are not perfect,Therefore,there are many loopholes in the business income taxes policy of tax-free share purchase.Through systematic policy analysis,this paper sorts out the basic elements of tax-free stock purchase,the tax exemption policy applicable to tax exempt equity acquisition and the practice of tax treatment.On the basis of policy interpretation,by introducing the present situation of tax-free share purchase in China,I found that there are three typical problems in its tax policy.Firstly the "equity" of equity payment among tax-free stock purchase is defined as "holding company",which falls short of the principle of continuity and acts against the design intention of tax-free sctock purchase.Secondly The proportion of equity purchase is unreasonable,which only considers the equity "incremental" in the stock purchase did not take the acquisition into account that owns before the acquisition of the acquired equity,in other words the equity "stock",which runs counter to the Principle of Tax Fairness.Thirdly the definition of "transferred assets" in the formula for non-equity interest in the acquisition of shares is not clear,which is easy to produce the "transferred assets"of the acquiring firm or the "transferred assets" of the acquired company,resulting in the amount of income of non-equity payment is controversial.The fourth chapter takes G company to acquire S company as the typical case,and explains the influence of these problems on the actual business.Finally,the author puts forward the corresponding suggestions for the typical problem:the "equity" in the equity purchase of the tax-free equity purchase should be defined as "the equity of the parent company".Finally,the author puts forward the corresponding suggestions for the typical problem.First of all the "equity" in the equity payment of the tax-free equity purchase should be defined as "the equity of the parent company".When taking the proportion of the equity purchase into account,we should not only consider the"incremental",but the "stock".The definition of the "transferred asset" in the non-equity payment should be clearly defined as the "transferred asset" of the acquiring firm to the acquiring firm,defined as the "transferred asset" of the acquired company to the acquired company.