Corporate structure change

Changing corporate structure often arises as a business and taxation necessity incorporate activities in Israel, as well as in multinational activities.

Auren ‘s tax experts in Israel and around the world joined forces and knowledge to develop creative taxation solutions in this area and to approve these solutions vis-à-vis the Israeli tax authorities and international activity, as well as getting the approvals for the structural changes in the foreign tax authorities.

Main aspects of change of structure:

• For local companies for structural tax-savings

• Following the change in ownership (acquisition) and investments or mergers

• For family companies and in intergenerational transition

• For Israeli companies with business activity abroad

• For multinational companies operating in Israel

The change in the corporate structure should always be reported in every country where the organizations are registered with the Companies Register. In most cases, a change in the corporate structure should also be reported to the tax authorities.

The challenge facing Auren’s taxation experts is to match the structural change which will be with the optimal taxation solution. In some cases, with the minimum taxation from the moment of the transaction itself, and in other cases with a broader vision and the ability to forecast and anticipate the future saving in a long-term optimal taxation path.

Most corporate restructuring begins with comprehensive guidance and consultancy for the organization management and shareholders, with a detailed vision of all the organization’s components, stock ownership, business interests, and business plan.

Subsequently, the tax experts will base their opinion on the proper tax stand, which will include the estimation and the expert review. If necessary, submit a tax decision (Ruling) application to the tax authorities, to obtain business and tax certainty regarding the tax implications of the transaction and to obtain a commitment from the various tax authorities.