Comprehensive capital markets tax services

Companies can encounter many challenges in accessing capital markets. This includes designing and optimising a capital-market-oriented holding structure, dealing with taxation issues arising from equity restructuring before an IPO, and introducing an Employee Stock Option Plan (ESOP) for core employees. KPMG's capital market tax services team can provide one-stop services, covering advisory and implementation assistance throughout the entirety of capital market operations.

Our service team consists of professionals with tax, accounting, legal and financial backgrounds. We can assist companies communicate effectively with tax and other governmental authorities.

Designing of a capital-market-oriented holding structure

To assist companies in tapping the capital markets, we can provide advisory services regarding the overall company holding structure, to achieve the following objectives:

• Conduct capital operations with improved flexibility and lower tax burdens, including M&A, restructuring and IPO
• Establish an appropriate holding structure to facilitate IPOs, investing and financing activities
• Optimising the ultimate controllers’ tax burden throughout the stages of investing, holding and future exit
• Stabilising the ultimate controllers' control over the company 

IPO-oriented tax health check and business model optimisation

• To meet IPO requirements, identify and resolve historical accounting and tax issues
• Assist in negotiations with tax authorities to obtain the most favourable tax treatment to reduce tax the costs of the IPO process
• Optimise business models to reduce a group’s overall tax burden, including supply chain planning, accessing local incentives and site selection assistance, intra-group related party transaction planning, etc.
• Assistance on tax benefit applications, such as advice with and undertaking of R&D super deductions and tax incentive applications for high-tech enterprise, etc.

IPO restructuring advisory and implementation

• IPO route planning, IPO structure design, asset/equity restructure planning and relevant tax planning
• Overall solutions, foreign exchange issues and tax planning on establishing a structure aimed at overseas listings or dismantling it
• IPO route/restructure plan optimisation and dispute resolution

ESOP and tax planning

• Interviews with employees, designing ESOPs (restricted stock, stock option, etc.), designing and reviewing partnership schemes
• Advisory and planning for tax-efficient ESOP arrangements
• Implementation and promotion for ESOPs