Research On The Tax Planning Strategy Of Corporate Income Tax Under The Framework Of Multinational M&A

With the rapid economic development on a global scale,a variety of new business models emerge in an endless stream,while the traditional industries are also actively transformed and upgraded through technological means and management innovations.The Chinese economy has also been injected with vitality due to the development of the new economy.Against this background,Chinese companies' willingness to “go global” has become stronger,mainly to purchase foreign advanced production technologies,mature trademark brands,and improved product production and sales channels,and to place the world into the sixth merger and acquisition.The difference between the wave and the previous five is that the focus of the sixth wave of mergers and acquisitions is in China.The core of M&A is the transfer of advanced production technology,which in turn drives the transfer of capital,talent,ideas,brands,and channels in the global market.However,for Chinese companies that are still on the international start line,when conducting overseas acquisitions,they need to understand the potential tax risks in the process of mergers and acquisitions in an unfamiliar tax environment and conduct effective transactions during the transaction process.Avoiding and understanding the tax regulations,taxation policies,and international bilateral or multilateral tax treaties in the country or region where the target company is located in order to make rational decisions is a series of new requirements and challenges for Chinese companies.Based on the real situation of companies that have succeeded in cross-border mergers and acquisitions of British companies,and the latest taxation policies of the countries where the mergers and acquisitions take place,this paper proposes a plan for how to structure the transaction structure and conduct tax planning in the process of acquiring British companies.The tax burden and possible tax risk under the plan are expected to provide some references and help to the “going out” enterprises.