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

It’s a natural point in a growing business’ journey to seek new opportunities outside their country of origin. This allows for the development of new markets and a chance to better connect with new customers; these actions can increase their sales and profits while mitigating financial risks by not relying on just a single market.

Challenges are constant when one attempts to establish and maintain a business in different countries and regions– commercial contexts vary, and regulatory environments can be challenging to understand and even harder to keep up with as they change.

This study was conducted and published to highlight the various tax risks and opportunities related to mergers and acquisitions in the Asia Pacific, including the Philippines. The insight provided in the study is taken from the insights of our experts' experiences covering due diligence tax structuring in the region and the frequent tax risks 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. However, such transactions also benefit from tax incentives such as amortisation 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.

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