Mergers & Acquisitions (”M&A”) are useful tools to facilitate companies starting or expanding their business in Vietnam. However, to guarantee the implementation, it is crucial to master all of the possible tax exposures associated with a deal, especially for cross-border deals where different tax and corporate regulatory systems are involved.

To assist Clients in realistically measuring tax risks implied in M&A transactions, Grant Thornton Vietnam provide Tax Due Diligence and relevant services focusing on:

  • Identifying hidden tax exposures on both the buyers’ side and sellers’ side;
  • Advising the feasibility with and viability with possible structures for the deal; and
  • Providing knowledgeable guidance on post-deal procedures/disposals.

Approaches and services:

Your business: Pre M&A transaction

Service 1: Regulatory advice

Grant Thornton’s solutions: Provide professional advice on Vietnamese regulations for the foreign investors’ initial understanding

Timeline: 1-2 weeks

Deliverable:

  • Verbal/email correspondence advice;
  • Memoranda

Your business: Tax liabilities identification

Service 2: Buying’s side and selling’s side tax due diligence

Grant Thornton’s solutions: Conduct fieldwork to review the Targets’ tax documentation to identify tax exposure for Buyers and Sellers

Timeline: 1-3 weeks.

Deliverable: Report on tax exposures and possible mitigation recommendations.

Your business: Tax and Corporate restructuring

Service 3: Advise on business restructring

Grant Thornton’s solutions:

  • Advise on feasible and effective structures for both business and tax purposes;
  • Advise on relevant licensing and liquidation procedures.

Timeline: 1-2 weeks.

Deliverable:

  • Advisory Report;
  • Meeting/ email for clarification

Your business: Wind-up disposal

Service 4: Liqidation and post-deal clearance

Grant Thornton’s solutions:

  • Return Licenses to relevant Authorities;
  • Labor and social insurance obligation clearance;
  • Tax and customs clearance.

Timeline: 3- 6 months.

Deliverable

  • Confirmation of obligation clearances by Tax/Customs/ Insurance Authorities;
  • Closure approvals

 

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