Income Tax Planning Issues In Mergers And Acquisitions

Since the reform and opening up,China's economy has been rapid development,in the past three decades,all kinds of enterprises as mushroomed rise.Now this era,China's characteristics of the socialist market economy has been developed to a certain extent,the major industries have produced a number of giants-like enterprises,with the increasing number of entrepreneurs,competition between enterprises is becoming increasingly fierce.In the current market environment,the wave of corporate mergers and acquisitions has been gradually set off.Enterprises to absorb the merger is widely used in the Chinese market as a common way of merging.It can not only effectively integrate the resources within the enterprise,but also improve the competitiveness of the enterprises after the merger is completed.For the enterprises to absorb the merger,the cost of the merger is an important issue that has to be faced in the business combination.The tax burden in the cost of the merger can be saved through the tax planning method,and the tax planning does not violate the laws of China.This paper studies the tax planning in the enterprises to absorb the merger from different perspectives.This essay have been divided into five parts:The first part is the introduction,which mainly studies the literature about tax planning and M&A at home and abroad,and discusses the existing research results and the researchable points.The second part is Taxation planning theory research studied the basic theory of tax planning and tax policy on business combination;the third part is the specific application of tax planning in the merger;the fourth part is case analysis,this essay analyzes the case of the Meidi group,and puts forward different assumptions for all aspects of M&A.Then,this essay analyzes how to reduce the cost of business consolidation by planning the arrangement of the program,ultimately optimize the cost of the enterprise.The fifth part is the conclusion,the conclusion part summarizes the whole text,according to the method proposed in the article and the specific application of the situation,this essay analyzes the application of tax planning method in enterprises with different development states.