Transaction Advisory Services

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Transaction Tax

Every transaction has tax implications, whether it comes to a merger, acquisition, disposal, refinancing, restructuring or initial public offering (IPO). Identifying, understanding and planning for tax risks and implications is critical to support deal negotiation and structuring considerations, in addition to managing risks associated with a contemplated transaction.

Our Transaction Tax team consists of a worldwide network of advisors to assist clients in navigating the tax implications of a transaction. We mobilize wherever needed – assembling a customized, integrated global team to work with you throughout the transaction lifecycle, from the initial due diligence to post-deal integration.

Additionally, we recommend structuring alternatives that consider each transaction’s unique facts and circumstances, investment objectives, and potential future exit strategies to better manage tax risks and exposures with an aim to improve the overall rate of return.

EY - Transaction Tax

Our services include:

  • Due Diligence (Buy-side/Sell-side)
    • Tax due diligence
  • Tax Structuring
    • Design a tax efficient transaction structure, including acquisition structure (e.g., equity deal or asset deal), holding structure, and financing structure
    • Minimize transaction tax costs throughout the transaction process
    • Minimize tax cost during the investment holding stage
    • Avoid or reduce the tax cost upon future exit
  • Other Transaction Related Tax Advisory Services
    • Review tax modelling
    • Tax advice on purchase price allocation and tax cost basis step-up
    • SPA review and negotiation support
    • Post-closing tax assistance, including settlement of outstanding tax matters, tax indemnification, transaction or restructuring related tax filing and tax ruling
    • Post-deal tax planning, including tax efficient supply chain analysis, debt pushdown, transfer pricing arrangements, and avoidance of permanent establishment risks
    • Tax advisory and compliance assistance for China outbound investors, including Controlled Foreign Corporation (CFC) regulations, Chinese tax residency, transfer pricing documentation, and tax performance management
    • Tax advice or implementation support for post-deal restructuring and integration

Type of client│Main scope of services

  • Multinational Corporation
    • Tax due diligence
    • Tax structuring services on holding and financing structures
    • Tax planning on deal structure
    • PRC tax analysis and tax filing assistance for buy-side or sell-side share transfer
    • Tax ruling on preferential tax treatment
    • Tax advisory services on post-deal integration
    • Tax analysis and tax filing assistance on group restructuring
    • Transfer pricing planning and documentation
  • State-owned Enterprise
    • Tax due diligence
    • Tax performance advisory
    • Design of tax efficient internal control process
    • Tax advisory and implementation support on group restructuring
    • Group-level effective tax rate (ETR) analysis and optimization solution
  • Privately Owned Enterprise
    • Tax due diligence
    • Tax analysis and compliance solution on Chinese tax residency status and CFC risk
    • Tax advisory on operating model effectiveness (OME)
    • Design of tax efficient employee incentive plan
    • Tax planning and computation assistance on foreign tax credit
  • Private Equity Fund
    • Tax due diligence
    • Tax advisory services on fund structure
    • Transaction structure tax advisory and tax modelling support
    • Tax compliance and improvement solutions for the target company
  • Government
    • Tax planning for Public-Private Partnership (PPP) projects (joint workforce with other teams such as Corporate Finance Strategy, Transaction Support and Valuation and Business Modelling)
    • Government procurement of China domestic and outbound tax advisory services

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