A Study Of Individual Income Tax System Of Share Transfer In Mergers And Acquisitions

As a complex and diverse capital transaction,M&A has become an important tool for enterprises to optimize resource allocation,upgrade capital structure and product structure.In the process of merger and acquisition,the transfer of equity is the most common one.In addition,the market is nearly filled with natural person's investment and shareholding.As the main body of mergers and acquisitions,individual participation in transactions has gradually come into our vision.Although M&A transactions are affected by many non-tax factors,for the parties involved in the transaction,the change of tax system is the key to the impact of M&A.In August 2018,the amendment of the new Personal Income Tax Law has been issued,which indicates that the personal income tax will continue to perform its tax function steadily.In the new law,the provisions of "tax registration before industrial and commercial registration" determines the high-intensity tax collection and management,which helps tax authorities to control tax sources.However,the specific operation methods such as interdepartmental coordination have not yet been introduced and need to be unified after consideration.At the same time,under the background of mergers and acquisitions in China,there are many other criticisms of the personal income tax system,mainly in the aspects of legislation and collection and management.As a result,tax authorities and natural taxpayers are at a loss for each other,and even more directly blocking the completion of M&A transactions.First,in terms of the legislation of tax basis,the controversial issues are revenue recognition and reasonable cost confirmation.Combining with the case analysis in practice,the problem of revenue recognition can be categorized as the problem of installment payment and betting agreement.In terms of tax preference legislation,the transfer of individual equity can pay tax in five years on the condition of non-monetary investment.However,based on the normative documents,there are some defects in the form of low rank.At the same time,its provisions are vague and difficult to provide clear guidance for practice.In addition to the five-year tax incentives to pay tax in installments,the shareholders of enterprises who also transfer shares also enjoy the special tax treatment of enterprise income tax policy.So how to balance the tax treatment between income tax is also a big problem.Second,as for tax collection and management,the inconvenience caused by tax places to tax withholding agents in different places and the non-neutrality of asset appraisal intermediaries in the process of tax declaration are urgent problems to be solved.Facing all kinds of problems in practice,we first rely on the reflection and reconstruction of legislation.We should adhere to the principle of tax law as the center,and reflect on tax preferences,tax basis and tax collection and control system.Find the way to solve the problem from the legislation,so as to complete the reconstruction of the individual income tax system of the whole enterprise's merger and acquisition equity transfer.Then,these institutional problems cannot be separated from the cooperation of natural taxpayers and the cooperation of government departments,especially tax authority.