On the 24th, the Chinese Ministry of Finance and the State Administration of Taxation announced the "Guidelines for Major Tax Preferential Policies for Enterprise Mergers and Acquisitions" (hereinafter referred to as the "Guidelines"). In recent years, the pace of mergers and acquisitions by Chinese enterprises has been accelerating, with an increasing number of cross regional and cross ownership mergers and acquisitions and transaction amounts. The types of corporate mergers and acquisitions are complex, involving multiple stakeholders, and the tax treatment requirements for asset and equity transfers are relatively detailed. Some regions and enterprises have reported difficulties and problems in categorizing and flexibly applying policies. In order to guide enterprises to correctly apply merger and reorganization tax policies and reduce their tax compliance costs, the Ministry of Finance, together with the State Administration of Taxation and other departments, has compiled the "Guidelines", which have sorted out the main tax preferential policies and tax collection and management documents that currently support enterprise merger and reorganization. According to the type of enterprise merger and reorganization, they have classified and clarified the applicable subjects, applicable situations, policy content, execution requirements, and policy basis, and also attached specific tax policy documents and collection and management documents compilation, striving to provide taxpayers with concise and easy to operate guidelines. Prior to the release of the "Guidelines", the Ministry of Finance and the State Administration of Taxation implemented a series of targeted and wide-ranging tax preferential policies and measures to strengthen the role of enterprise mergers and acquisitions as the main body, forming a tax policy system covering multiple types of taxes such as enterprise income tax, value-added tax, deed tax, land value-added tax, stamp duty, etc., covering various types of mergers and acquisitions such as changes in enterprise legal form, debt restructuring, equity acquisition, asset acquisition, enterprise merger, enterprise separation, and non monetary asset outward investment. This has played an important role in reducing the tax burden of enterprise mergers and acquisitions, stimulating market vitality, and promoting high-quality economic development. The Ministry of Finance and the State Administration of Taxation require local finance and taxation departments to further carry out publicity, training, and policy interpretation work, strengthen coordination and cooperation with relevant departments, ensure the effective implementation of policies, and continuously stimulate the vitality of market entities. (New Society)