IPO tax issues for chinese companies and entrepreneurs 2021 | STEP – Advising Families Across Generations | 22 July 2021 | Web Event

The initial public offering is a remarkable milestone for a private company and its investors. It not only opens the broader public market for a company to raise capital, but also provides an influx of liquidity for its investors. As one of the most sophisticated and delicate transactions in the capital market, IPO also presents great challenges to all involved in such transaction, including a range of tax issues. To successfully transform a private company into a publicly traded one, a well-designed tax planning scheme is essential and better to be prepared by tax experts as early as possible.

Through the combination of lecturing and case sharing, this webinar will introduce and discuss the typical tax issues faced by Chinese companies and entrepreneurs during the overseas IPO process. Among the topics of discussion, we shall highlight:

1. Tax issues arising from the build-up of red-chip structure for Chinese companies seeking overseas IPOs, including thetax issues involved in VIE structures.
2. Tax implications for the Employees ESOP arrangement and the tax benefits of utilizing an offshore trust for theEmployees ESOP.
3. Tax implications for the company’s founders in terms of offshore listing structure and the tax benefits of setting upthe family trust.

2021 Speaker

Alice Zhang
Tax Partner, King & Wood Mallesons