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in value, such as depreciation or amortization, are based qualifying group of the relevant taxable persons.
on market value in the transferee’s financial statements.
If BRR applies, the Transferee shall make the following • The business or its independent parts transferred under
adjustments in his financial Statements. Article 27(1) of the Corporate Tax Law are subsequently
transferred or disposed of.
• In cases other than upon realisation: to exclude
depreciation, amortisation, or other change in the value Consequences of the clawback:
of the transferred assets and liabilities to the extent of
the amount not previously recognised for CT. In the hands of the transferor:

• Upon realisation: to include the amount of • The transfer of business or part thereof will be treated
depreciation, amortisation, or other change in the value as having taken place at market value.
of the transferred assets and liabilities not previously
recognized for CT purposes. • And any gain or loss calculated with the consideration
of the market value and net book value on the date of
Effect of several transfers: transfer shall be taxable in the year in which clawback
has triggered.
• If there are several transfers on a no gain or loss basis,
all the gains and losses in relation to those transfers • If the transferor in the year in which clawback has
shall be included upon realisation. triggered has ceased to be a taxable person, transferee
shall include such gain or loss in his taxable income.
• The depreciation, amortisation or any other amount
previously excluded shall be included in the taxable In the hands of Transferee:
income of the transferee upon realisation.
• The Transferee will reverse the depreciation,
• If a clawback is triggered in any of the transfer within amortisation or any other change in the value of assets
the several transfers, then the amount of gain previously and liabilities that has previously been adjusted by the
excluded shall be taxable in the hands of “transferor of Transferee.
the transaction” for which the clawback is triggered in • Following a clawback trigger, the Transferee stops
the tax period in which the clawback is triggered. making adjustments for Taxable Income determination.
However, if the transfer was recorded differently from
Value of shares or ownership interest transferred: Market Value in Financial Statements, adjustments are
necessary.
The value of the consideration received by the transferor
shall be treated as having a value not exceeding the
net book value of the shares or ownership interests
surrendered, less the value of any other form of
consideration received.

Transfer of Tax Losses:

Tax losses incurred by the transferor before the
restructuring can be carried forward and treated as the
transferee’s losses if the transferee continues a similar
business activity as the transferor.

4.Clawback of Business Restructuring Relief:

Business Restructuring Relief won’t be granted if, within
two years of transfer:

• Shares or ownership interests in either the transferor
or transferee that were issued as a part of business
restructuring relief are sold, transferred, or disposed of,
either wholly or in part, to an entity not a part of the

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