The COVID-19 has accelerated a lot of companies' needs for corporate restructuring, including:
- business rationalization;
- long term development;
- sustainability; or
- competitive edge in the market;
An appropriate restructuring plan which blends financial and tax considerations prove beneficial for companies to successfully meet their business goals such as the creation of shareholder value, increase in liquidity through attractions of investment, and better business performance. It also has the effect of achieving the balance and combination of centralization of core business and decentralization, the improvement of corporate governance and transparency, the facilitation of effective business succession planning, integrated approach to the supervision of management board, business specialization, easier access to financing and reduction in business risk exposures.
To acquaint the audience with key PRC tax considerations applicable to corporate restructurings and M&A.
Who should attend
All stakeholders, CEOs, and finance managers who oversee tax matters and heads of business who are considering/are already involved in restructuring their businesses.
Benefits of Attending
Corporate holding structures and business models can be easily put in place in the process of corporate restructuring and M&As. Restructuring to optimize corporate holding and business structures at a later date could not only become a tricky exercise but could also attract the attention of tax authorities and taint the restructuring exercise as being tax-motivated.
We expect by the end of the sharing session, the audiences will:
- have a broad understanding of how corporate holdings and businesses could be structured from a tax perspective
- know the key PRC tax implications that should be considered during the corporate restructuring (e.g. special reorganization, indirect transfer rule in China, etc.)
- understand the common approaches in the market for corporate restructuring
1) Corporate restructuring involves direct transfer of PRC entities and application of special re-organization (i.e. capital gain tax deferral) in China;
2) Corporate restructuring involves the indirect transfer of PRC entities and strategies to deal with the indirect tax-transfer rule in China
3) Tax considerations for asset transfer;
4) Case sharing