ARTICLE · 26 AUGUST 2016

Corporate Restructuring Services - A Tax Perspective

Deloitte Cyprus

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Corporate restructuring refers to the act of reorganising the legal ownership, operational, or other structures of a company for the purpose of serving the needs of its stakeholders.

CyprusTax

Antonis Taliotis

Michael Michaelides

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OVERVIEW

Corporate restructuring refers to the act of reorganising the legal, ownership, operational, or other structures of a company for the purpose of serving the needs of its stakeholders. Our Corporate Restructuring Services Tax team works with companies undergoing a restructuring, by analyzing their tax issues and assisting them in evaluating tax efficient restructuring options.

KEY ISSUES

In Cyprus, there are a number of key tax issues that often impact corporate restructurings. The most frequent are:

Debt forgiveness

The release of debt can lead to tax implications for both a borrower and lending company, in particular when these are connected parties. To ensure that the transaction is appropriately structured advice should be sought with respect to such debt forgiveness.

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