Help with your Swedish tax returns - how to handle Sectra redemption shares 2015
The Annual General Meeting 2015 resolved to carry out a redemption program and SEK 4.50 per share was distributed to Sectra shareholders in October. According to general advice issued by the Swedish Tax Agency regarding the redemption program, 95.8% of the acquisition fees for an original class A or class B share in Sectra AB should be attributed to remaining shares and 4.2% to redemption shares.
The redemption or sale of shares (designated SECT IL A and SECT IL B) is declared as sale of shares on Form K4.
Example based on the general advice
A shareholder owns one (1) Sectra share with an acquisition cost of SEK 40 immediately prior to the share split. Accordingly, the acquisition cost allocated to each redemption share should be (SEK 40 x 0.042 =) SEK 1.68. The acquisition cost of the remaining share will then be
(SEK 40 - 1.68 =) SEK 38.32.
If the redemption shares were disposed of (through sale or redemption) at a price of SEK 4.50, the capital gain calculated based on the general advice is (SEK 4.50 - 1.68 =) SEK 2.82.
Example based on the standard rule
Alternatively, the so-called standard rule can be applied to listed shares. Since the class B redemption shares were traded for a certain period of time, these can be regarded as listed. However, the class A redemption shares are not regarded as listed and accordingly, the standard rule cannot be applied to them.
The standard rule implies that the acquisition cost is equal to 20% of the net proceeds for the redeemed (SEK 4.50 x 0.2 = SEK 0.90) or sold redemption shares.
If the series B redemption share was disposed of (through sale or redemption) at a price of SEK 4.50, the capital gain calculated based on the standard rule (SEK 4.50 x 0.2 = SEK 0.90) is SEK 4.50 – 0.90 = SEK 3.60.
Information published by the Swedish Tax Agency (language Swedish)
For further information, please contact:
Helena Pettersson, Chief Investor Relations Officer Sectra AB, ph 46 13 23 52 04, e-mail info.investor@sectra.se
About the Sectra Group
Sectra was founded in 1978 and has its roots in Linköping University in Sweden. The company’s business operation includes cutting-edge products and services within the niche segments of medical IT and secure communication. Sectra has subsidiaries in 14 countries and operates through partners worldwide. Sales in the 2014/2015 fiscal year totaled SEK 961 million. The Sectra share is quoted on the Nasdaq Stockholm exchange. For more information, visit www.sectra.com
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