Much has been written about China’s economic growth. "Deals in the middle kingdom" takes a high level look at some of the tax issues involved in conducting mergers and acquisitions in the country, including how the financial performance of target companies may be enhanced and the need for detailed due diligence. Read the press release or download the report (pdf, 2.4mb).
Deals in the pearl of the East
One of the reasons often cited for Hong Kong’s success in attracting foreign investment is its low tax regime. This report from our Transaction Tax (pdf, 867kb) network provides a brief introduction to some of the more fundamental issues that buyers will face when assessing the tax implications associated with doing deals in the pearl of the East — a term historically used to describe Hong Kong.
Transaction Tax Alert - The new China income tax rules for corporate restructuring
The long-awaited new income tax rules for corporate restructurings (the New Rules) were released by the Ministry of Finance and the State Administration of Taxation on 30 April 2009 and published on 7 May 2009. The New Rules provide guidance as to the types of transactions that qualify as a restructuring, how those transactions will be taxed, and what will be required to qualify under the New Rules. The New Rules are complex, but they represent a significant step forward for Mergers & Acquisitions and tax planning in China. Business owners or investors should carefully consider the requirements of the New Rules when transactions impact their business. Please download the tax alert ( pdf, 252kb) for more information.