M&A Tax

M&A Tax

Taxes are at the heart of any deal in today’s global economy.

Taxes are at the heart of any deal in today’s global economy.

They are equally important for strategic planning and structuring of a transaction as well as for its execution and post-deal integration processes ensuring that tax risks and opportunities are identified. 

KPMG’s M&A Tax team in Macedonia combines a global focus with local knowledge to help clients maximize value from cross-border M&A deals.

Rising tax audit scrutiny of domestic and cross-border M&A structures and expected future international tax reforms on an EU and global level are causing anxiety in the M&A markets. 

The increased attention of the tax administration on shareholding structures, deal financing and transfer pricing aspects of restructurings may lead to denial of deductions for tax purposes or assessment of additional taxable gains or revenue to taxpayers. 

KPMG’s M&A Tax team helps clients identify and manage material tax exposure, as well as design deal structures that enhance after-tax returns and avoid fiscal pitfalls and adverse post-transaction tax implications. 

We assist clients in developing tax planning ideas and effective structuring strategies tailored to their specific needs. 

Our professionals work closely with KPMG’s Deal Advisory and Legal teams and other M&A Tax professionals from the KPMG network worldwide to provide focused and extensive advice. 

Through multidisciplinary teams, we offer a wide range of M&A Tax services covering all stages in the life cycle of a deal.

Tax due diligence

  • Reviewing a target’s historic tax profile and identify potential tax exposures or significant tax attributes and their impact on a transaction from purchase-side
  • Reviewing a target’s historic tax position and identify tax-saving opportunities from buy-side perspective

Tax structuring of mergers, acquisitions and disposals

  • Developing tax-efficient deal structures
  • Providing advice on shareholding structures in a cross-border context to obtain benefits from applicable tax treaties
  • Considering transfer pricing aspects of intra-group transactions 
  • Supporting the deal through the implementation stage with a focus on strategic priorities

Debt restructuring

  • Identifying and planning the tax consequences arising in debt modifications, debt cancellations, and negotiated settlements  
  • Assisting clients in negotiating terms of debt modification agreements 
  • Advising on mitigating potential limitations on the utilization of tax losses and other valuable tax attributes   
  • Analyzing the tax effects of intercompany reorganizations

Tax-related post-acquisition integration

  • Analyzing the tax implications from business processes, structural changes, and human capital organizations   
  • Evaluating alternative approaches to obtain tax efficiencies   
  • Making use of available tax incentives   
  • Implementing a group’s transfer pricing arrangements  
  • Introducing new processes and controls to mitigate tax exposure

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