Research On The Income Tax Planning For Mergers And Acquisitions

Financing,listing and M&A have now become the trilogy of the development and growth of enterprises,and also the most concern of the companies' shareholders and managers.The income tax generated by transfering of value-added assets during M&A is a direct cost that can not be ignored,choicing different M&A plans usually causes different income tax.Therefore,how to choose the optimal M&A scheme to reduce the cost of M&A becomes much more important.In order to meet the needs of M&A transactions,since the introduction of the enterprise income tax law in 2008,the Ministry of Finance and the State Administration of taxation have issued a series of policies and regulations on income tax for mergers and acquisitions.Among them,the Ministry of Finance in 2009 promulgated the corporate restructuring business income tax on a number of sddues notice,the notice firstly put forword the conditions and concrete treatment of special tax treatment.The subsequent documents were supplemented and changed on the basis of the NO.59 policy.This paper focuses on the analysis of the income tax planning form five aspects,which are object of M&A,model of M&A,model of payment,transaction time and organiazation of corporatin after M&A.It mainly discusses how to make full use of policies and tax incentives in the process of M&A.It concoludes the selectable tax plannings combined with the case.From the practical point of view,the paper takes the case of Besttone buying Tyread as an example,which can make horizontal and vertical contrast as the objects of M&A are a money-lossing business and a profitable enterprise.This paper analyzes the tax arrangements in all aspects of M&A,puts forward and compares different tax planning schemes,and compares the tax costs and other acquisition costs of various plans.Through systematicly studying of the real case,this peper makes the idea of desighing and schemes for M&A income tax planning clear,finds out the tax planning space,estimates the tax planning of reducing tax burden and the tax effect of tax synergies analysis corresponding tax and restructuring policy.The last part is conclusion summarizing the main points of 4 aspects of income tax planing of M&A,with the wish to help the company in compliance with the related tax policies and regulations on the rational development of tax planning,so as to effectively reduce the tax burden.