Overview

A project transfer has the characteristics of an asset transfer when it involves transfers of ownership of the assets of the project, e.g., construction buildings or equipment. However, a transferee under a project transfer is required to assume obligations the same way as a transferee in a share transfer.

Article 66 of Decree No 108/2006/ND-CP, issued in September 2006, provides that the conditions for project transfer are the same as those applied to share transfer.

However, the tax obligations applied to share transfers and asset transfers differ, and a business acquiring a project instead of assets may risk assuming unexpected tax obligations.

Indochine Counsel provides the details.

To read more click ‘view briefing’.