Tax Services

Is it worth it and is it feasible? That is the most fundamental question which needs to be answered while assessing the advantages or necessity of a merger in the Czech Republic. Apart from the factual and economic reasons/factors, legal and tax factors must be always taken into the count. We always try to simplify and streamline the process so the client receives the best result as soon as possible. We are also ready to organize a market research for you, including identification of potential investors to your firm or companies to take over within the market.

We can assist with:

• Identification of possible tax factors related to the merger
• Choosing the most appropriate merger with respect to identified tax benefits and risks
• Cooperation with the legal and accounting team in order to achieve maximum efficiency

In case of a merger with a company outside the client’s holding group, it is appropriate to assess the tax risks that may be transferred to the client during the merger. We are able to evaluate and provide information about potential tax risks in these areas:

• Corporate income tax
  • Tax calculation
  • Depreciation and tax value of fixed assets
  • Tax provisions and reserves
  • Tax-deductible and non-deductible costs
  • Loans provided within the holding group and thin capitalization
• Value added tax and other taxes
• Tax arrears
• Transfer pricing

We especially concentrate on helping with:

• Advice on a merger timeline
• Draft of the merger step-list
• Advice on merger financing
• Elimination of receivables arising from the merger against equity

During realization we are usually supporting the client with:

• Determination of the decisive date – impact to effective tax payable and tax advantages
• Supporting lawyers with merger project (essential document describing the main aspects of the merger)
• Filing with tax authorities, social security, health insurance

Post acquisition reorganization and setting up processes.

• Set up the customer’s supply chain, risk and function of individual entities
• • Economic / business aspect
  • Optimising the tax burden
  • Accounting aspects (reporting) – impact on financing
• Set up KPIs and motivate employees
• Reduce risk for the owner, key managers, statutory bodies
• Assistance with setting transfer prices and documentation on transfer pricing
• Advance Pricing Agreement (APA)
• Internal audit, controlling