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11. BUSINESS TRANSFORMATION AND RE-ORGANIZATION

Subject to conditions, there is no tax on capital gains arising from re-organization of business. Re-organization means:

  • Merger of two or more resident companies;
  • Acquisition or takeover of more than 50% or more of shares or voting rights, by number or value, in a resident company in exchange for shares of purchasing company;
  • Contribution of at least 50% of assets and liabilities of a resident company by another resident company solely in exchange of shares in the purchasing company;
  • Splitting of a resident company into two or more resident companies