What does tax advisory for mergers and company transformations involve?
A merger, company transformation, liquidation or contribution in kind in Poland may have wide-ranging tax implications. These may relate to corporate income tax, VAT, tax on civil law transactions or local taxes. Many reorganization processes can be tax-neutral, although this is always subject to several conditions. Therefore, when planning or carrying out a business reorganization under Polish law, it is important to seek comprehensive support backed by specialist knowledge and experience, particularly in tax matters.
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Who can benefit from tax advisory for mergers and company transformations?
Tax advisory services for mergers and company transformations are intended for businesses in Poland undergoing organizational change. These changes may be driven by various factors, such as changes in the ownership structure, transferring the business to the next generation, new business objectives and investments, or requirements imposed by banks.
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When should you seek tax advice on mergers and company transformations?
We provide advice not only at the planning stage but also during implementation. We explain how to carry out the process correctly from a Polish tax compliance perspective while avoiding unnecessary disruption to the business.
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What are the benefits of tax advisory for mergers and company transformations?
A tax advisor will draw attention to issues that may have a significant impact on day-to-day operations, such as correct invoicing, the tax treatment of individual transactions or the operation of cash registers during a company transformation, merger or demerger.
Scope of support
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Analysis of the implications of the proposed transaction
The first step is to analyze all implications of the proposed reorganization transaction. Accurately determining the tax implications of the base-case scenario, the conditions for its implementation and the potential risks, and considering them alongside the relevant legal and accounting implications, is the foundation of the process. It often also provides the starting point for developing potential alternative scenarios and selecting the optimal approach to business reorganization.
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Identification and analysis of possible alternative options
In practice, there are usually several ways to achieve the business objectives behind a reorganization. Moreover, an analysis of the legal, tax and accounting implications of the base-case scenario will often indicate that alternative approaches should be considered. We therefore identify possible alternatives and assess their implications, advantages, disadvantages and risks against those of the base-case scenario.
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Support in selecting the optimal structure
We help clients make fully informed decisions by outlining the available scenarios and their implications, while sharing our experience and insights gained in similar circumstances. Given the significance of reorganization processes, it is usually necessary to balance business, legal, tax, financial and accounting considerations. This also requires skillful, professional and effective coordination with all stakeholders directly or indirectly affected by the reorganization.
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Ongoing support during and after the process
We support clients throughout the entire process, not only at the planning stage, but also during implementation. Drawing on our extensive experience in carrying out reorganization processes, we identify potential challenges and difficulties in advance and prepare the organization to navigate the reorganization as smoothly and safely as possible. This enables business owners and management teams to remain focused on running the business. We also provide ongoing support to internal teams in addressing the numerous tax matters that arise throughout the process.
Implementation process
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Gathering the required information and documents
A reliable analysis requires a comprehensive set of information and documents concerning the entities involved, the relevant business objectives and relationships, as well as any priorities and constraints that need to be considered when assessing the available scenarios.
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Analysis
Based on the information and documents provided, we carry out the analysis required to achieve the agreed objectives. This includes assessing the tax implications of the base-case scenario, identifying alternative options and ultimately developing the optimal reorganization structure while ensuring the highest possible level of tax certainty throughout the process.
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Developing the optimal scenario
Our advisors present the conclusions from their analysis. The preferred scenario, or several potential courses of action considered optimal and appropriate to the circumstances, is usually developed during workshops held jointly with the client and, where relevant, the investor.
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Implementation
Depending on the course of the process and the nature and complexity of the selected scenario, our advisors provide ongoing support throughout the implementation stage. We identify potential challenges and difficulties in advance and prepare the organization to navigate the reorganization as smoothly and safely as possible, enabling business owners and management teams to remain focused on running the business.
A reliable analysis requires a comprehensive set of information and documents concerning the entities involved, the relevant business objectives and relationships, as well as any priorities and constraints that need to be considered when assessing the available scenarios.
