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Academy of Mergers and Acquisitions: Succession principle for mergers of capital companies

Under Article 494 ksh explicitly stated the principle of succession of the general rights and obligations of merging companies.

Under Article 494 ksh explicitly stated the principle of succession of the general rights and obligations of merging companies.

This also applies to the succession of permits, concessions and concessions.

Succession in the scope of tax legislation in relation to the rights and obligations of each of the merging companies has been...

Under Article 494 ksh explicitly stated the principle of succession of the general rights and obligations of merging companies. This also applies to the succession of permits, concessions and concessions.

Succession in the scope of tax legislation with regard to the rights and obligations of each merging company has been expressed by the legislator under Article 93 Order. At present there is no doubt that the tax succession concerns both the acquisition of the company and the establishment of the new company.

However, the principle of full succession is limited if the specific provision was different; this has places, for example, in the case of the possibility of settling the tax loss realised by the company acquired in the acquiring company after the merger of those companies.

With regard to the tax on goods and services, the successor shall, in the case of mergers, enter into the right to reduce the tax due and to refund the difference in tax, acquired by the company being acquired or merged by the new company being bound. Taking over rights is accompanied by taking over duties. The rules of conduct in this respect should be based on a merger plan.

It should be noted that permits, concessions, reliefs are also taken over under universal succession unless other provisions are provided for in the relevant decisions or laws. In this respect, there is also the taking over of workplaces in the mode Article 231 The labor code. As a result of the merger, the mutual claims and obligations of the merging companies are terminated by law.

With regard to the duty on goods and services, the successor in the case of mergers shall enter into the right to reduce the tax due and to refund the difference in tax acquired by the company being acquired, or the companies merging by the bond of the new company. The acquisition of rights is accompanied by the acquisition of duties, and the rules of conduct in this respect should follow the merger plan.

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