Doing M&A in CEE: Tax traps and structuring opportunities

10-12-2020 Against a backdrop of global competition and integrated markets, many businesses around the world are seeking growth opportunities outside their country of origin despite shifting, and at times complex, regulatory environments.

Pursuing transactions in Central and Eastern Europe (CEE) can present attractive prospects to investors, but it's important to understand that the acquisition and integration processes still respond to local specificities – even when the country in question is part of the European Union. That is why we have published this study: to shed light on merger and acquisition tax risks and opportunities in CEE.

The insight provided is based on our experts' experiences conducting due diligence tax structuring in the region and covers the tax risks they frequently encounter that threaten the success of the deal-making and subsequent integration processes in these fast-growing markets.

What we uncover is how the main 'tax traps' that appear in due diligence processes are related to thin capitalisation rules and the use of tax losses. However, these same transactions can also benefit from local tax incentives that support investments and exist alongside tax exemptions applicable to mergers and demergers.

Download the report now to learn about tax traps and incentives that will help you determine the right next step.

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Doing MA in CEE

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