Research On Tax Planning Of Corporate Mergers And Acquisitions

In recent years,many Merge & Acquisition(M&A)transactions have started to appear in China’s capital market,and M&A has become a means for many enterprises to achieve their strategic goals.Through M&A,these enterprises can quickly enter a new field,optimize the allocation of resources in a short period of time,enhance the overall efficiency of the enterprise and improve market competitiveness.When studying an enterprise’s M&A plan,companies should consider several elements such as market,technology,talent,legal,financial and taxation.Among them,tax planning is an important part of tax treatment.If the M&A plan is not implemented properly,it may lead to significant tax risks,so enterprises need to design a good tax planning plan at all stages of M&A activities to help them successfully complete the M&A,obtain economic benefits and achieve long-term development.The theory of effective tax planning and the theory of tax synergies provide the theoretical basis for M&A tax planning,and reasonable tax planning by enterprises is conducive to the successful implementation of M&A activities.In each stage of the M&A activity,the focus is different.In the preparation stage,it is necessary to determine the appropriate M&A target,in the payment stage,it is necessary to consider the special tax treatment regulations,in the financing stage,it is necessary to measure the advantages and disadvantages of the financing methods,and in the integration stage,it is necessary to properly arrange the organization form of the acquired enterprise.The goal throughout the entire M&A process is to maximize the M&A revenue through tax planning while preventing tax planning risks.This paper firstly explains the background and significance of the article,compares the relevant literature review at home and abroad,and studies the latest achievements on corporate M&A tax planning.Secondly,after studying the theories of corporate M&A and tax planning,it classifies corporate M&A more clearly and organizes the tax regulations and policies involved in corporate M&A.Then,we will explain the ways and points of tax planning in each stage of M&A,so that we can design different schemes for tax planning in the later stage.After summarizing the tax policies,risk factors and precautionary measures involved in the current M&A,the case of Xinan’s M&A of Huayang Chemical is analyzed to explore which tax planning method is more beneficial to the M&A.Finally,in the conclusion of the article,we summarize the whole article and conclude that: enterprises should choose suitable target enterprises by taking into account their own development strategies and profit and loss situations;when paying the consideration for M&A transactions,try to use equity payment or make the proportion of equity payment exceed 85% in order to meet the conditions of special tax treatment,achieve tax deferral and obtain time value;in the financing process,enterprises should consider their current After the M&A is completed,the organization form will be decided according to the profit and loss of both parties and the tax incentives.