Hong Kong Revises Guidance on Court-Free Company Amalgamations

On 16 December 2016, the Hong Kong Inland Revenue Department published revised guidance on the profits tax consequences of a court-free amalgamation. The guidance covers:

• Amalgamation with sale of assets of the amalgamating company;
• Amalgamation without sale of assets of the amalgamating company, which covers the tax treatment of both the amalgamating and amalgamated companies;
• The utilization of tax losses brought forward, which depends on certain conditions, including:
  • The financial resour…