Enterprise Mergers And Acquisitions Tax Planning Strategies And Case Studies

Mergers and Acquisitions is not only an important means of capital operation but also an important tool to participate in market competition for enterprises. Seeking capital appreciation lies in the root of M&A. But for a single enterprise, the purpose of M&A behavior may have different motives and different forms. Among the factors that affecting M&A, tax is an important one that directly affect the success or failure of M&A. In the M&A activity, legally, scientifically and efficiently performing tax planning is not only conducive to the success of M&A and in the meantime enhance the value of the companies after the merger, but also can help to improve tax compliance and maximize the achievement of the national macro-control goals.Up till now, Western countries have experienced five large waves of M&A. and the economic globalization is helping to accelerate the arrival of the global trend of M&A. After the2008world financial crisis, the Chinese enterprises showed strong momentum in the domestic and international M&A markets, with the number and size of M&A activity growing rapidly. Faced with the new situation, the Chinese government on the one hand introduced a large number of favorable policies to promote M&A activity, and on the other hand, they continued to improve the legal system for M&A in China, to regulate the behavior of M&A. Although the current M&A is active in Chinese market, compared with foreign countries, the tax planning for China’s enterprises in the M&A activity is still in its infancy. There are some theoretical explorations on the motive, valuation and financing methods and other related issues for M&A. but still further investigation is needed.In this paper, we use the method of combined theory and practical to study the tax planning of M&A. According to the new tax law as well as the recent changes in relevant laws, the paper gives an overall analysis of the tax planning strategies in the enterprise M&A in china. We use a typical case to explain in details on how to select the appropriate tax planning schemes which make the study be strong applied and practical.The first part is introduction, which introduces the research background and significance of the topic, and reviews the related Chinese and foreign literature. The second part is about the enterprise M&A tax planning theory. We also discuss the necessity and the feasibility of tax planning.The third part introduces tax planning strategies in the enterprise M&A.The fourth part is M&A of listed companies in tax planning in case the actual application. The fifth part is the research summary of this paper.