A Research of China’s New Corporation Income Tax-Merger & Reorganization of Taiwanese Enterprises in Mainland China

• Main Authors: Hsu Cheng-Hsing, 許正興
• Other Authors: Zhuang Yixiong
• Format: Others
• Language: zh-TW
• Published: 2012
• Online Access: http://ndltd.ncl.edu.tw/handle/jehzk9

碩士 === 長榮大學 === 高階管理碩士在職專班 === 100 === Mergers, acquisitions, and reorganizations are key strategies for improving industrial and enterprise organization structure in every country. There are also effective methods for rapidly expanding businesses, increasing the benefits of economies of scale, and strengthening international competitive ability. In Mainland China, the implementation of mergers,acquisitions,and reorganizations among enterprises, is relatively rapid despite the late start. Under accelerated globalization, large-scale implementation of mergers, acquisitions,and reorganizations has become essential. The global financial crisis triggered by the 2008 subprime mortgage crisis provided excellent opportunities for mergers and acquisitions for some enterprises. A new trend of global mergers and acquisitions is beginning . For Taiwanese enterprises in Mainland China, completing mergers, acquisitions, and reorganizations is crucial for business development. Currently, countries in the Western world,such as those in Europe and America, have superior tax policies for mergers, acquisitions, and reorganizations that address every detail and entity involved in merger deals. Based on current studies, it can be determined that research on the income tax policy for merger deals in Mainland China is still being developed; both the theory and practical applications require strengthening. Creating comprehensive accounting standards and tax policies for enterprise merger deals in Mainland China based on successful outside experiences is a current challenge faced by industries, government, and research fields. In this study, we first explain the evolution of the tax system in Mainland China. Next, we compare and contrast new laws on corporate income tax and analyze the income tax regulations for corporate restructuring. Among mergers,acquisitions,and reorganizations of enterprises,mergers are the most common. In this study, we focus on the income tax issues of enterprise merger deals and analyze the details of existing tax policies in China regarding merger deals. Then,based on the results, we comprehensively examine tax planning for merger deals. Tax planning is not the primary objective of a merger. However, it has a significant impact during mergers and requires serious consideration by Taiwanese enterprises in Mainland China. Taiwanese enterprises in Mainland China must face the problem of transition or succession. For enterprise growth, they must prepare to become a publicly-listed company. Therefore, the finance, accounting, and tax departments of an enterprise have a close relationship. To accomplish each task involved in corporate restructuring, it is a crucial management factors for Taiwanese enterprises in Mainland China to have continuous learning andtraining and complete cooperation among professional teams.