A Study On The Policy Effect Of M&A Income Tax

M&A is an important way of capital operation,and an effective means of market allocation.Since the reform and opening up,especially in recent years,with the development of the market economy,the strategic adjustment of the national economic structure and the global financial crisis,M&As are becoming more and more active.There is no denying that M&A play a very important role in optimizing the allocation of resources,regulating the stock of capital,and improving the overall competitiveness of enterprises.Although tax isn't the main driving factors of M&A,Mergers and acquisitions will involve commodity tax,income tax and many other taxes.Among them,the income tax is the most complex and has the most extensive impact on M&A.The income tax cost is an important part of M&A cost,which influences the decision of M&A and the payment choice and so on.Therefore,the income tax policy of mergers and acquisitions has become an important factor in enterprise M&A.Tax policy,especially the preferential tax policy,is an expression of the state's intention.From a series of M&A income tax policy issued by our country,State encourages and supports mergers and acquisitions which are conducive to optimizing the allocation of resources.Since the implementation of the new enterprise income tax law,China has successively issued 2009,No.59,the State Administration of Taxation Notice,2010 fourth and other documents,mergers and acquisitions income tax policy has formed a relatively complete framework.The introduction of taxation policies in 2014,No.109,fiscal 116 and 2014,further improved the income tax policy of mergers and acquisitions,greatly reducing the tax costs of mergers and acquisitions transactions.However,due to the rapid economic development.the forms of mergers and acquisitions are becoming more and more diverse,and the situation in practice is more complex.There are still many imperfections in the income tax system of mergers and acquisitions in China.In this context,it is of great significance to study the effect of corporate mergers and acquisitions income tax policy.The content of this paper includes:what is the income tax policy framework in China's enterprise,how many mergers and acquisitions transactions can enjoy preferential tax treatment,how the income tax policy affected M&A industry and region.whether it is truly reduce the tax burden of enterprise income tax.According to the statistical analysis of the sample data in Guotaian database,it is concluded that the proportion of M&A and reorganization is relatively small.The current M&A income tax policy is in the process of promoting mergers and acquisitions.Did not meet the expectations,the tax policy on corporate mergers and acquisitions trading's industry and regional guidance role is not obvious.And then explore the international experience of mergers and acquisitions income tax.developed countries encourage and promote the behavior of corporate mergers and acquisitions,tax policy conform to industry development.In view of the above problems and enlightenment,this paper puts forward the consummation suggestion of M&A income tax policy of our country:further enlarges the scale of M&A and reorganization,including reducing the proportion of acquisition of tax-free equity and increasing the type of mergers and acquisitions for special tax treatment,Policy-oriented,including enhanced mergers and acquisitions industry and regional orientation.The introduction of tax policy corresponding to the merger law.Finally.the conclusion of this paper is drawn,the statistics show that China's current M&A income tax policy is not obvious to the macro-control of M&A,and the income tax cost is an important factor to be taken into account in M&A.So the government should insist on encouraging the merger and reorganization of the tax policy orientation,promote the balanced development of the trading industry and the region,to achieve the goal of optimization and upgrading China's industrial structure.This paper is different from the previous merger and reorganization of income tax policy research in the perspective of research methods,the previous literature mostly from the perspective of corporate tax research or only theoretical analysis in the lack of tax policy deficiencies.this paper from the perspective of government policy development to improve the current M&A income tax policy in policy effect.Using the literature research method,quantitative analysis and qualitative analysis combined with a large number of sample statistical data as the support,identify the merger and reorganization of income tax policy problems and verify the proposed merger and reorganization of China's income tax policy design recommendations.