Year: 2025
Type: article
Abstract: Merge is one of the alternative ways to liquidate companies, which has several advantages.Also, Merge can be implemented with goals such as agility, cost reduction, and increased synergy in companies and banks.Although the merger is stated in Article 111 of the Islamic Civil Code and its executive regulations, there are some ambiguities and omitted points in this article and regulations, which can have tax risks for merging and merging companies.In this research, an attempt has been made to examine the ambiguities of the article of the mentioned law and its compliance with other laws and regulations, and accounting standards to benefit from the benefits of tax exemption.In this research, cases such as the conditions of merging at book value based on accounting standards, how to act with treasury shares based on the Commercial Law, submission or non-submission of the declaration of liquidation in line with the Article 116 of the Islamic Civil Code, withholding tax on the transfer of assets in merging companies the necessary investigation and analysis was presented.In the end, taking into account the provisions of Article 119 of the Civil Code and Articles 26 and 27 of the Law on State Management Services, suggestions for the Tax Affairs Organization to revise the executive regulations of Article 111 or provide a circular to clarify the tax issues of mergers for companies and tax auditors.Is expressed.
Source: Journal of Tax Research
Authors: Hanzaleh Fendereski, Mohammad Mehdi Naderi Noureyni
Institution: University of Tehran
Language: English
Topic: Taxation and Legal Issues
Subfield: Accounting
Domain: Social Sciences
Open Access status: hybrid
OpenAlex ID: W7082643355