Research Of Corporate Income Tax Risk In The Demolition Of VIE Structure

In order to build an efficient and open capital market and promote the implementation of the new securities law registration system in China,the domestic capital market has gradually liberalized the listing conditions.In the overseas listing of VIE structures,almost all companies in the stock market are frequently shorted abroad.Next,they have sought to return to the domestic market.This requires the complete dismantling of the VIE structure and the resolution of laws,foreign exchange,clear equity,and funding of different countries involved in the dismantling process.During the dismantling process of the VIE structure,the corporate income tax issue has a huge impact,and the related tax risks are not effectively controlled,which will directly lead to the failure of the dismantling scheme and even the possibility of the corporate capital chain breaking.This article focuses on the analysis of the corporate income tax risks involved in the dismantling process of the VIE structure,and analyzes the reasons for the income tax problems it faces when adopting different models in the dismantling of the VIE structure.Among them,the nature of the legal margin of the VIE structure itself,and the relevant laws have some ambiguity,which makes the dismantling process face a greater risk of tax adjustment.In order to make the equity clear after dismantling the structure,the corporate income tax on equity transfer has become the most direct reflection of the digital cost of tax risks.The latter part of the article uses the form of case analysis to detail the process of Focus Media's successful dismantling of the VIE structure and the backdoor listing of Qixi Holdings,and analyzes its risk performance of corporate income tax.Finally,it gives advice on the risk prevention related to corporate income tax risks in the dismantling of the VIE structure.