企业重组—营改增给大企业打来的机遇和挑战(英文版)(论文资料).pdfVIP

Enterprises Restructuring – Opportunities Challenges from VAT Pilot Reform By Minterpku With the rolling-out of the VAT pilot reform, some large and medium-sized enterprises in VAT pilot reform regions had restructured or intend to restructure their business in order to separate secondary business lines from core business and turning secondary lines into independent companies. It was reported that, in first half of this year, about 25 large enterprises in Shanghai (for example, Shanghai Electric, SAIC MOTOR and Shanghai Huayi) had implemented enterprises restructuring to separate their secondary business lines from core business. The large enterprises in the pilot regions of the VAT reform may restructure their business based on the tax and non-tax concerns. Given that the enterprises restructuring may involve complicated legal and tax issues, enterprises intending to implement restructuring by taking the opportunity of the VAT pilot reform may have to conduct careful evaluation and comparison on the cost of the different restructuring plans (including tax costs), as well as the ongoing tax influence in future following the restructuring, to avoid any adverse tax consequences to the enterprises due to the restructuring. 1. Reasons why large enterprises in pilot regions intend to restructure its business As one of the most important tax reform in the period of the 12th-Five Year Plan, VAT reform is not just a tax system change. Although the VAT pilot reform is labeled as a tax cut measures by some experts and is expected to cut tax burden of the enterprises, in our view, the more important purpose of the VAT reform is to promote the adju