企业合并分立案例的中国税务分析(英文)

SCGroupPRCTaxAnalysisontheProposedM&AProject23November,2010ContentI.OurUnderstandingII.PRCTaxImplications1)Merger2)Afterthemerger•OptionI–Spin-off•OptionII–TransferassetstoCMIII.OtherConsiderationIV.Appendix2I.OurUnderstandingSCGroupismainlyengagedinmanufacturingbusinessandhasseveralPRCentitiesinChina.Currently,theManagementwouldliketorestructureitsholdingstructurewithintheGroup.Thecurrentholdingstructurecanbedepictedasfollows:3100%SCAsiaLimited(“SCAsia”)BSInternationalIndustrialLimited(“BS”)SC(SouthChina)Limited(“SCHK”)MKIndustrial(Shenzhen)Limited(“MK”)TheGroup100%SC(Shenzhen)Co.,Ltd(“SCSZ”)100%I.OurUnderstandingBasedontheManagement’sdecision,SCSZwillbemergedwithMKinShenzhen.Undertheproposedmerger,SCSZwillbemergedintoMKbywayofabsorptionandMKwillbethesurvivingentity.Aftercompletionofthemerger,theManagementwillconsiderthefollowingoptions:OptionI:ThesurvivingMKwillbedividedintotwoseparateentities,namelyMKAandMKBshortlyafterthemerger.MKAwillholdthelanduserightandbuildingslocatedinShenzhen,relevanttrademarkandaMissionHillCountryClubMembership,whileMKBwillcontinuetoconductitsintendedbusinessasbeforethespin-off.Inthisconnection,theshareholderofMKBshallbechangedfromBStoanothergrouprelatedcompany,SCHK,andBSshallremainasthesoleshareholderofMKA.Oncethechangeofshareholdingiscompleted,MKAwillbesoldtoathirdpartythroughBSsubsequently.OptionII:ThesurvivingMKwillsellitstrademarkandaMissionHillCountryClubmembership,andthelanduserightandbuildinglocatedatShenzhentoaPRCsubsidiaryofCMseparatelywithoutdividingintotwoseparateentitiesafterthecompletionofthemerger.4II.PRCTaxImplications–MergerTheproposedrestructuringplancanbedepictedasfollows:5SCSZSCAsiaBSSCHKMKMergerNewMKSCAsiaBSSCHK20%80%II.PRCTaxImplications–MergerFact:SCSZmergedintoMKPRCTaxImplications:1.SCSZisrequiredtopaybacktheexempted/reducedEITforprevioustaxholidaysasitsoperatingperiodislessthan10years2.Thenetoperatingloss(“NOL”)ofSCSZcanbeutilisedbyMKaccordingtoCaishui[2009]No.59.TheestimatedNOLtobeutilized=NetfairassetvalueofSCSZxLongest-termgovernmentbondyieldrateofthecurrentyearend6II.PRCTaxImplicationsontheMergerUnderAssetTransfers7TaxesTaxRateApplicableScopeTaxpayerValueAddedTax(“VAT”)17%Thetransferamountofinventory,whiletheVATcanbecreditedbythebuyer(ifbondedcanbeexemptfromVATunderbondedtransfer)Seller(creditableagainstoutputVAT)2%Salesofsecond-handfixedassets(purchasedpriorto1Jan.2009)Seller(non-creditableagainstoutputVAT)17%Salesofsecond-handfixedassets(purchasedafter1Jan.2009)Seller(creditableagainstoutputVAT)BusinessTax(“BT”)5%Transferofintangibleassets&SalesofpropertiesSellerEnterpriseIncomeTax(“EIT”)25%Gainfromtransferoftheassets,ifany.Iftransferredatnetbookvalue,therewouldbenogain,butitwillbesubjecttotaxbureau'sassessmentonthearm'slengthbasisforrelatedpartytransactions.Seller8II.PRCTaxImplicationsontheMergerUnderAssetTransfersTaxesTaxRatesApplicableScopeTaxpayerDeedTax(“DT”)3%(ApplicableDTrateforShenzhen)TheamountoftransferoflanduserightsorpropertyrightsBuyerLandAppreciationTax(“LAT”)30%-60%AppreciationamountondisposaloflanduserightsorpropertyrightsSellerRe-evaluationofCustomsDuty(“CD”)andImportValueAddedTaxApplicableratesforCustomsDutyand17%forImportValueAddedTaxFordisposalofthetax-exemptedequipmentundercustomsupervision,thedutiablepriceshallbecalculatedbasedontheresidualperiodofcustomsupervision.SellerStampDuty(“SD”)0.03%or0.05%Thecontractsumofsignedcontractsfortransferringinventoryandotherassets(includingintangibleassets)SellerandBuyer*Allrelatedpartytransactionsshouldbeconductedonanarm'slengthbasis.Otherwise,thetaxbureauisauthorizedtomakeadjustment.II.PRCTaxImplications-Option1:Spinoff(afterthemerger)Afterthemerger,thenewMKwillbesplitintotwocompanieswitheachcompanyseparatelyownedbydifferentshareholders.9MKHold:-Landuseright-Trademark-ClubMembership-KeepexistingoperatingbusinessactivitiesBSSCHKMKAMKBBSSCHK20%80%10TaxesTaxRateApplicableScope/DescriptionTaxpayerVAT17%Thetransferamountofinventory,whiletheVATcanbecreditedbythebuyer(ifbondedcanbeexemptfromVATunderbondedtransfer)MKA(creditableagainstoutputVAT)2%Salesofsecond-handfixedassets(purchasedpriorto1Jan.2009)MKA(non-creditableagainstoutputVAT)17%Salesofsecond-handfixedassets(purchasedafter1Jan.2009)MKA(creditableagainstoutputVAT)EIT25%Gainfromtransferoftheassets.Ifassetsweretransferredatnetbookvalue,therewouldbenogain.However,itissubjecttotaxbureau'sassessmentonthearm'slengthbasisforrelatedpartytransactions.MeiKeiASD0.03%or0.05%Thecontractsumofdutiablecontractsfortransferringinventoryandotherassets(includingintangibleassets)MKAandMKBII.PRCTaxImplications-Option1:Spinoff(afterthemerger)ThePRCtaximplicationsontransfersofrelevantassetsaresummarizedasbelow:Afterthespin-off,BSwillsellMKAtoathirdparty.ThePRCtaximplicationsaresummarizedasbelow:SinceMKAwouldonlyholdalanduseright,atrademarkandaMissionHillCountryClubMembership,andwouldnothaveanyoperatingactivities,itcannotfulfilltherequirementsforelectingspecialreorganizationtaxtreatments,i.e.boththeoriginalenterpriseandtheenterprisebeingseparatedcontinuetocarryo