Conversion
Legal succession
The Tax Ordinance provides for universal succession, under which a converted company enters into all the rights and obligations of the entity in its previous legal form provided under tax law, including rights and obligations arising out of decisions issued under tax regulations.
Conversion from one form of capital company into another form of capital company does not result in loss of the right to use losses generated by the converted company.
Corporate income tax effects
As a rule, conversion from one form of capital company into another form of capital company is neutral from the CIT point of view. The converted company settles CIT under the principle of continuation.
Indirect taxes (VAT, transaction tax)
Conversion of a capital company is neutral from the point of view of VAT and the tax on civil-law transactions.