Solutions

Consulting services for investors: tax due diligence and tax structuring

Consulting services for investors are intended to help foreign companies enter the Ukrainian market, to effectively structure their investments in Ukraine, and to assess tax risks and benefits when acquiring a company in Ukraine. These services are designed to help investors determine tax efficient mechanisms for investing in Ukraine and to protect foreign investors from tax risks during the acquisition of a company in Ukraine.

Consulting services for investors include:

  • Tax due diligence – diagnostics of the company's activities to identify and mitigate tax risks. The tax due diligence includes:
    • Review of the company's financial and tax reporting
    • Checking of whether the Ukrainian basic taxes (including CIT, VAT, withholding tax, PIT and related mandatory contributions, etc.) are accrued correctly
    • Overview of the key methods of managing the company's tax burden
    • Overview of the company's key typical and non-standard transactions and analysis of completeness and accuracy of their tax accounting
    • Overview of tax exemptions and incentives and confirmation of the company's right to use them
    • Analysis of transactions with related parties and non-residents
    • Analysis of tax assets and tax discounts, and confirmation of the company's right to use them
    • Identification of risks of future additional tax accruals, assessment of their level and the amount of possible additional accruals of tax and penalties; provision of investors with recommendations on a proposed acquisition and mitigation of such risks in the future
  • Other consulting services for investors include:
    • Tax structuring:
      • Legal structure analysis of the investor and the company being acquired
      • Recommendations on the agreement structure that is effective in terms of taxes and allows:
        • Effective acquisition of a company or fund raising
        • Effective profit sharing mechanisms for investors
        • Effective withdrawal strategy – future sale of the company or attraction of additional investors
      • Recommendations on changing the company's operational structure for mitigating tax risks (if required)
    • Review of company acquisition agreements and recommendations on amending such agreements to protect the investor from tax risks
    • Other consulting services:
      • Analysis of tax implications for non-resident investors' planned transactions in Ukraine
      • Recommendations on alternative opportunities for setting up business in Ukraine and assessment of key tax advantages and disadvantages

Contacts

Andriy Polischuk

Andriy Polischuk

Director, Tax & Legal

Andriy has over 12 years of experience in tax consulting and specializes in providing professional services to companies across multiple industries and sectors, with a primary focus on technology and ... More

Vasyl Drobot

Vasyl Drobot

Senior Manager, Tax&Legal

Vasyl has more than eight years’ experience in providing tax consulting services. He specializes in tax due diligence, tax audits and reviews, support to companies during audits by tax authorities, ta... More