Study On Tax Planning About Reorganization Of BW

Under the background of overcapacity economy,the actual operation situation of China's iron and steel industry is not very optimistic.The operation risk and tax risk of iron and steel enterprises are increasing with the development of economy.In order to implement the policy of "deleveraging" of iron and steel enterprises formulated by the government as soon as possible,document No.34 issued by the State Office pointed out that we should make policies and measures to promote the implementation of M&A and restructuring of iron and steel enterprises,with emphasis on strengthening policy support for M&A enterprises in the examination and approval of merger projects.Taxation will be involved in the whole process of merger and acquisition of iron and steel enterprises in China.Taxation is an important factor affecting the cost of merger and acquisition.The process of merger and acquisition mainly involves the collection of circulation tax and enterprise income tax.The amount of these taxes is an important factor in the cost of merger and acquisition,which will seriously affect the overall efficiency of merger at a certain level.Therefore,in order to reduce the cost of mergers and acquisitions of iron and steel enterprises,both sides of mergers and acquisitions need to formulate reasonable tax planning plan according to their own actual situation.In recent years,China's state-owned enterprises are gradually going abroad to develop their own business to other countries in the world.If the state-owned enterprises want to occupy a place in the world,they must improve their comprehensive strength.In this case,many enterprises give priority to M&A transactions to expand their scale of development and consolidate their world status.In the process of merger and acquisition,the merger enterprise will make tax planning to reduce the corresponding cost of merger and acquisition.The choice of tax planning scheme is the key factor to decide whether an enterprise can succeed in merger and acquisition.It has important reference significance for the actual operation of merger and acquisition and reorganization in iron and steel industry.Reasonable and effective tax planning scheme can effectively reduce tax costs for enterprises.However,the design of tax planning plan requires that taxpayers are familiar with the relevant tax policies and can reasonably use the relevant laws and regulations.This study takes the merger and acquisition of B company and W company as an example to analyze the tax planning of two major iron and steel enterprises in China under different cash payment modes in the process of merger and acquisition.Through the analysis of the merger and reorganization business,we can find that the merger meets the requirements of special tax treatment,and enterprises can provide relevant declaration materials to the relevant authorities in time.From this analysis,it can be concluded that the tax problem of enterprise income tax in this case is only applicable to the special tax treatment.The two sides of the transaction have agreed on the way and proportion of equity delivery in the process of merger and acquisition.Therefore,this paper only analyses tax planning under different cash payment modes in the process of M&A and reorganization between B Steel Company and W Steel Enterprise.This paper specifically analyses the tax payment of the two parties under different cash payment modes,and also analyses the cash harvest of the acquired party in this transaction.This research mainly combines the actual situation and real data of the merger report and transaction report signed by B company and W company.Because B company and W company both have the leading position in the steel industry of our country and even the world,this M&A is more classical in the steel industry M&A,which has certain deterrent effect and reference value for other enterprises.