Taxation of sale and purchase agreement on participatory interests
15 February, 2025
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Our Client, the Ukrainian resident, decided to purchase 100% participatory interests in a foreign company that owns a valuable asset, i.e. a yacht. With regards to prospects, the Client had questions regarding taxation on subsequent sale of the company or its assets separately, planning also to receive proceeds from the sale to its personal foreign account.
Interlegal Yachting lawyers supported the deal on sale and purchase of participatory interests in a foreign company, while Corporate and Taxes lawyer’s task was to analyze potential tax risks of such a deal for the Client.
According to CFC rules, a foreign company acquired by the Client shall be recognized as CFC, while the Client itself shall be deemed as its controlling entity. Interlegal consulted upon liabilities of the CFC controlling entity and fulfillment of such duties, as well as clarified the issues of CFC taxation in Ukraine and grounds for tax exemption.
According to CRS rules, the Client’s personal account in a foreign bank shall be covered by such rules. The Ukrainian tax office will be able to obtain the Client’s personal data and information about the deal and its value.
Interlegal lawyers provided legal advice upon taxation in Ukraine of the Client’s income from further sale of the company’s shares or assets, as well as developed several options for structure of the further deal with the optimal tax burden on the Client.
Interlegal law team led the project: junior lawyer Oleksandra Savielieva and managing attorney Dmytro Bondar, managed by partner Irina Voyevodina.
Interlegal experts are ready to provide legal support at all stages of performance of the agreements on sale and purchase of assets, as well as to provide legal advice upon taxation and potential risks.
If you need legal support for your deals, please do not hesitate to contact Interlegal managing attorney Dmytro Bondar.
