Research On The Income Tax System Of China's Enterprise Assets Acquisition

In recent years,economic vitality has stimulated the market's activity.Under the stimulation of various economic hotspot policies,the domestic and overseas M&A markets have been growing rapidly.The large number of corporate reorganizations and mergers and acquisitions have produced tremendous economic benefits and asset appreciation.At the same time,changes in domestic tax policies and systems will also directly affect taxpayer decisions.Based on this premise,it is of great significance to conduct in-depth research on corporate assets acquisitions and their taxation systems in order to safeguard national tax benefits,ensure fair competition,and stabilize the market order.Judging from the current income tax system for the purchase of corporate assets in China,there has been significant progress compared to the previous system.In particular,the issuance of Circular 59 has pointed out the direction for different types of tax treatment rules for asset acquisition.However,the document still exists.Insufficiency and controversy.The main ones are: the confirmation and proportion rules for substantive assets are not clear,non-monetary asset trading rules are mixed,and tax basis verification rules lead to repetitive taxation.Starting from the principle of acquisition of income tax on assets,the connotation of China's continuing operation rules and the continuity rules of shareholders' rights are still to be improved.In addition,the application of special taxation also violates the continuity rules of shareholders' rights and interests,and in non-monetary assets.In the tax treatment of transactions,China's tax law does not distinguish between non-monetary asset exchanges and non-monetary asset investment differences,resulting in the application of the same rules for different substantive transactional behaviors.Here,the logical contradiction for the definition of “holding company” is emphasized.It is difficult to guarantee the continuity of shareholders' equity in the payment behavior of the company's stocks,which will cause the loss of the reasons for the application of special tax treatment.In addition,whether there is a duplication of taxation in specific tax treatment,proceeding from the case,explains in detail the process of asset transfer from the point in time of completion of the transaction to the re-assignment of assets,and eliminates the entire carryover process in combination with China's dividend exemption system.Duplicate taxes,but it is undeniable that,under the classical tax system,multi-tiered double taxation is inevitable.Therefore,in view of the lack of content rules for substantive operating assets,it proposes the introduction of foreign-type debt-taking acquisition rules.On the one hand,special rules are given when calculating the proportion of assets.On the other hand,losses similar to corporate mergers are provided for the liabilities assumed in assets.inherit.In order to more scientifically continue the shareholders' equity continuity rule,it is proposed to amend the definition of “holding company” and at the same time refine the rules for more transactions,and carry out long-term tracking of the business transaction process in time.Finally,individual investors investing in non-monetary assets should apply the same tax rules as those of the enterprise when they meet the special tax treatment conditions,and they should be divided separately in the tax treatment of non-monetary asset exchanges.The scope of investment in monetary assets,whether in terms of tax principles or policy needs,in the formulation of rules,proposes to relax tax treatment and increase the applicable conditions of special tax treatment beyond equity exchange.