Doing M&A in Asia Pacific: Tax traps and structuring opportunities

Seeking opportunities outside their country of origin is a natural part of the growth journey for many businesses. By opening up new markets and connecting with new customers, businesses can increase their sales and profits, while spreading their risk by not having to rely on any one single market.

14 June 2021

Conducting business in different countries and regions presents its own set of challenges – commercial contexts vary and regulatory environments can be difficult to understand and even harder to keep up with as they change.

That is why we have published this study: to shed light on tax risks and opportunities related to mergers and acquisitions in Asia Pacific. We provide insight based on our experts' experiences that covers due diligence tax structuring in the region and the tax risks frequently encountered that can threaten the success of deal-making and subsequent integration processes in these fast-growing markets.

We reveal the main traps are related to transfer pricing and the use of tax losses, though such transactions also benefit from several tax incentives such as amortisations of assets and goodwill, and tax exemptions applicable to mergers or demergers. In doing so, we highlight what businesses can expect from conducting deals in the region, the regulatory challenges they are likely to come up against, and how they can avoid the tax traps while making the most of the structuring opportunities.

In Thailand, although there are some tax traps which investors should be aware of, the attractive tax policies offered by the government draw the attention of investors and support them in helping Thailand meet its national development objectives.

Martin Liebenow, Tax Director of Mazars in Thailand, said “Tax is a vital part of our M&A service offering that brings together advisory, valuation, due diligence, and integration consulting. Our understanding of the full transaction lifecycle helps us deliver tax advice at the speed needed to ensure that opportunities are seized, and the best prices obtained.“

Download the report now to learn about tax traps and incentives that will help you make the most strategic next step.

Document

Doing M&A in Asia Pacific
Doing M&A in Asia Pacific