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  • 2 Post By shri

Sell a company with substantial NOL?

  1. #1

    Join Date
    Jun 2018
    Posts
    13

    Sell a company with substantial NOL?

    I have a company that is laying dormant at the moment with a couple of million HKD in NOL that are just sitting there.
    No outstanding loans or nothing exists to third-parties and all accounting is in order.

    I'd like to reclaim at least some of the losses that I incurred, at least 50%.

    Has anyone ever done such a thing in Hong Kong or should I sell it to a different jurisdiction?
    Thanks.


  2. #2

    Join Date
    Jan 2017
    Posts
    102

    No market. I looked into this before. The latest transaction I heard was some Chinese company bought a macau offshore company. other than that I haven’t heard of anyone who bought comapny with losses for tax reasons


  3. #3

    Join Date
    Dec 2002
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    Also, the losses are not worth 50%.. Discounted tax credit at best, but considering other risks.

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  4. #4

    Join Date
    Jun 2018
    Posts
    13
    Quote Originally Posted by shri
    Also, the losses are not worth 50%.. Discounted tax credit at best, but considering other risks.
    I believe 10-25% ought to be more reasonable?

  5. #5

    Join Date
    Dec 2002
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    Even with the risk of buying a used company. Why would anyone pay over the tax rate for losses?

    I would say, a lot of business owners should already know how to minimize their taxes.

    Kowloon Goon and MandM! like this.
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