Research On Tax Planning Of Income Tax In Enterprise M&A

Along with the in-depth development of domestic supply-side reforms and the continuous transformation and upgrading of economic growth mode,China's corporate M&A market has continued to prosper and hit record highs.Taxation,as a cost factor that must be considered in the process of corporate restructuring,affects the success or failure of corporate restructuring.Appropriate tax planning can reduce mergers and acquisitions cost,helping companies maximize the benefits of M&A.Among the many types of taxes that affect corporate M&A business,income tax has the largest weight,and there are many factors involved,and there is a lot of planning space.Since the introduction of the "Enterprise Income Tax Law" in 2008,the Ministry of Finance and the State Administration of Taxation have also intensively introduced a series of corporate income tax policies and regulations.For example,The Financial and Taxation [2009] No.59 “Notice on Several Issues Concerning the Treatment of Corporate Income Tax on Enterprise Restructuring Business”,for the first time,proposed the special tax treatment conditions and methods for asset restructuring,and provided policy compliance for income tax planning in mergers and acquisitions.The article mainly uses the "theoretical research + case analysis" method to study the income tax planning in mergers and acquisitions.Firstly,it summarizes the theory of mergers and acquisitions,the theory of planning effectiveness and the theory of tax synergy.Secondly,it introduces in detail the Ministry of Finance and the State Administration of Taxation [2009] No.59 and [2014] No.109,which have the greatest impact on corporate mergers and acquisitions.The special tax treatment method;subsequently,it analyzes the operation methods of various tax planning ideas in each link.On the basis of the above theoretical research,the article takes the Chinese enterprise M&A Zhongxing Group as an example to elaborate the income tax planning in enterprise mergers and acquisitions.Briefly introduced the basic situation of the merger and acquisition and the motivation and process of mergers and acquisitions,sorting out the amount of the transaction consideration and the proportion of equity payment and the change of the equity of the listed company before and after the transaction;focusing on the various tax planning schemes of the four links in the case A comparative study was carried out to analyze the effectivenessof the case and the synergy effect of the taxation,sum up the successes and shortcomings of the case planning,and the implications for other M&A practice tax planning.Finally,the conclusion of the article is drawn: in all aspects of M&A,the target enterprises should pay attention to the scale and operation status of the target enterprises.When paying,they should choose the specific tax treatment method.Pay attention to the debt ratio and capital cost when financing.In the form of organization,depending on the situation,choose a subsidiary or branch,in order to design a sustainable tax planning that is most suitable for business development.