There are several ways to sell and buy a company. The most common way is a "share deal", which means buying a company by buying a shareholding or shares in the company. The second way is to buy a company through the purchase of the assets that make up the target company, which is called an "asset deal". In this case, the buyer does not receive a shareholding or shares in the company, but purchases its assets, liabilities, contractual relationships, employees, or business from the company. The third way is through status transformations, where the purchase of a company can be classified as a merger or acquisition, while the purchase of the assets of a company can be classified as a spin-off or demerger. It should be noted, however, that these are only some of the options available to business owners who choose to sell shares or assets of a company.
The tax implications arising from the sale or purchase of a company can be divided according to the type of tax, the main relevant considerations being corporate income tax, capital gains tax and value added tax. Tax implications can be further divided according to the structure of the transaction, the type of buyer and the status of the seller, where the tax treatment depends on whether the seller is a legal entity or an individual person. Tax structuring is an important part of both the sale process and the process of buying a company. Buyers are primarily interested in the tax aspects of financing the transaction, the distribution of profits in future periods and any subsequent exit from the ownership structure, while sellers are interested in the taxation of the profits generated by the sale.
|
