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China Tax - M&A: Post Deal Integration 

In the period immediately following a major deal - merger, acquisition or buyout - when rapid implementation of the business strategy is critical, groups often lose control of their tax position.  Yet, failure to align tax strategy with business strategy can delay successful integration and result in missed opportunities for optimizing the group's tax position. 

What is Post Deal Integration ("PDI") and how could you benefit from it?

PDI is a tailored solution-driven and commercially-focused plan which can provide you with the following a speed-to-value solutions which are vital to your successful acquisition in China:-

Commercial Integration

  • Ensure tax attributes to the success of the deal
  • Define tax relief for integration
  • Disposal planning for carve out/divestments

System Integration

  • Coordinate tax policies e.g. transfer pricing
  • Profit alignment strategy

Financial Integration

  • Refinancing strategies
  • Business leasing

Intellectual Property (IP)

  • Tax strategy for IP
  • R&D cost share versus royalties

Management Structure

  • Costs relocation and recharge
  • Personal tax issues of expatriate staff

Post Deal Tax Planning & Structuring

  • Maintain control of key tax areas during the transitional period
  • Develop long-term tax strategy to optimise group tax position

Synergies & Costs Reductions

  • Cost reduction target
  • Tax relief for merger & integration costs

Human Resources Integration

  • Employment policies and incentives
  • Recruitment strategy

Contacts
Danny Po
China M&A Tax Leader
Hong Kong
Tel: +[852] 2289 3097 Email
Howard Yu
Partner
Beijing
Tel: +[86] (10) 6533 2007 Email
Gary Chan
Partner
Shanghai
Tel: +[86] (21) 2323 3331 Email
Janet Xu
Partner
Guangzhou
Tel: +[86] (20) 3819 2193 Email

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