Tax Planning For China Listing Companies’ Restructuring

Companies’asset restructuring is not only an effective method to integrate and optimize the existing recourses, but also a fundamental way to establish and develop the modern enterprise system. In recent years, China’s capital market gradually improved, china listing companies’asset restructurings have become one of main players on stage of merger and acquisitions among enterprises. From asset restructurings listing companies could form powerful combinations or strength of the joints, achieve advantages complement, and become Enterprises Groups with strong competitiveness. Hence, the process of listing enterprises’asset restructuring was thought to be an effective way of capital operation, through which some listing companies with good quality assets and profitability achieved fast growth in scales, improved and strengthened core competitiveness; some with poor quality assets or weak profitability improved the core competitiveness through disposal non-performing assets and injecting new quality assets.Taxation as a relevant cost factor during asset restructuring process gradually attracted the necessary attention. How to achieve the tax planning for merger and acquisitions in reasonable manners is becoming the new subject in fields of tax planning. Since the study of tax planning for merger and acquisition activities in China is not yet matured and lack of relevant case studies, this article intends to implement the study by combining the tax planning theories and merger and acquisitions of listing companies. This article aims to analyze the exact tax costs and potential tax exposure contained among the merger and acquisitions in China, and try to make appropriate tax planning proposals, further assists the enterprises to schedule the tax planning during the merger and acquisitions legally, scientifically and comprehensively, make full use of prevailing tax policies, enjoy the entitled tax benefit, enable the success of the merger and acquisition objectives and eventually accomplish the mutual growth in listing companies’business and government taxation revenue.