%0 Journal Article %T Chinese Tax Reform and Risk Reduction of SME M&A %A Sven Ludwig %A Lars B¨¹ttner %J American Journal of Industrial and Business Management %P 1024-1032 %@ 2164-5175 %D 2019 %I Scientific Research Publishing %R 10.4236/ajibm.2019.94070 %X
Although China has developed into one of the world¡¯s leading economies, its inbound M&A market appears to be losing attractiveness. The number and volume of transactions have decreased for about a decade and multi-national corporations still note the difficult institutional framework leading to an uncertainty whether their investment will lead to economic success. A weak enforcement of law, widespread corruption as well as informal agreements between enterprises and authorities, often lead to business conditions that cannot be maintained by foreign investors post-acquisition. With the new tax-reform effective January 1, 2019, China, however, enables the taxation system to play a more supportive role in state governance. Thus, taxation & social insurance compliance is expected to improve which might influence the uncertainty and attractiveness of M&A investments in China as well. The paper at hand aims at summarizing the origin of tax-related risks in Chinese M&A-transactions as well as reflecting whether the recent tax reform will have an impact on the uncertainty of the investor.
%K M& %K A China %K Inbound M& %K A China %K Tax Due Diligence China %K Tax Risk China %K Guanxi %K SME China %U http://www.scirp.org/journal/PaperInformation.aspx?PaperID=92133