China M&A Tax Issues - Installment 3: Mergers and Special Purpose Vehicles (Updated)

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Mergers

A merger involves two or more enterprises forming a single legal entity (either existing or new) through combining their assets and liabilities. In China, the two methods through which a merger can be transacted are the absorption of an existing company or the creation of a new entity. Though the former resembles an acquisition, different tax rules apply if the transaction is recognized as a merger.

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Sheppard Mullin Richter & Hampton LLP on:

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