Korean M&A Taxation Guide 2012

 

Understanding M&A Tax in Korea 2012

A brief summary of tax and other pertinent issues for M&A and other types of reorganization in Korea.

1. Introduction

  • General information on mergers and acquisitions in Korea
  • Corporate tax
  • Withholding tax
  • Value added Tax
  • Stamp duty
  • Other taxes
  • Common forms of business
2. Acquisitions
  • The preference of purchasers: stock vs. asset deal
  • Stock acquisition
  • Asset acquisition
  • Transacrion costs
3. Basis of taxation following stock / asset acquisition
  • Stock Acquisition
  • Asset Acquisition
4. Financing of Acquisitions
  • Thin capitalisation and debt / equity distinction
  • Deductibility of interest (and similar costs)
  • Others
5. Mergers
  • Tax consequences
  • Others
6. Other structuring and post-deal issues
  • Repatriation of profits
  • Losses
  • Continuity of tax incentives
  • Group relief
7. Disposals
  • The preference of sellers: stock vs. asset deal
  • Share disposal
  • Asset disposal
8. Transaction costs for sellers
  • Value added tax
  • Stamp duty
  • Concessions relating to mergers and acquisitions
  • Tax deductibility of transation costs
9. Preparation of a target company for sale
  • Transfer of certain assets to another group company
  • Declaration of dividend prior to sale
10. Demergers
  • Types of demergers
  • Split-off
  • Spin-off: tax and other considerations
11. Listing / Initial public offering

12. Tax incentives

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