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Help with your Swedish tax returns—how to calculate the acquisition cost for Sectra redemption shares 2024

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Linköping, Sweden – November 22, 2024 – The Annual General Meeting of the international medical imaging IT and cybersecurity company Sectra (STO: SECT B) resolved to carry out a redemption program according to which SEK 1.10 per share was distributed to Sectra shareholders in October 2024. When a shareholder redeems shares in a company, the shareholder is deemed to have sold the shares. Therefore, a capital gains calculation shall be made. If the shares are managed in a Swedish investment savings account (Swedish: investeringssparkonto), other rules apply.

The calculation of the acquisition cost for redemption shares can be carried out in one of two ways:

  • According to the general advice issued by the Swedish Tax Agency, entailing that a certain portion of the relevant acquisition cost for the original shares is allotted to redemption shares.
  • Alternatively, the standard rule can be applied if the transaction pertains to Class B redemption shares.

In your Swedish tax assessment, a redemption or sale of Sectra redemption shares (designated SECT IL A and SECT IL B) is to be declared as a sale of shares on Form K4.

Example based on the general advice issued by the Swedish Tax Agency
According to the general advice (SKV A 2024:17) published in November by the Swedish Tax Agency, 99.6% of the acquisition cost for an original Class A or Class B share in Sectra AB should be attributed to remaining shares and 0.4% to the 2024 redemption shares of the respective class.

Assume that a shareholder owns one (1) ordinary Sectra Class B share with an acquisition cost of SEK 100 immediately prior to the share split in October 2024. The acquisition cost corresponds to the total amount paid for the share (including brokerage) less any adjustments for previous events in the company that have impacted the acquisition cost since the purchase of the share.

According to the Swedish Tax Agency’s general advice, 0.4% is to be allocated to the 2024 redemption share as the acquisition cost. In this example, this corresponds to SEK 0.40 (SEK 100 x 0.004). If the redemption shares were disposed of (through sale or redemption) at a price of SEK 1.10, the capital gain calculated based on the general advice is SEK 0.70 (SEK 1.10 - SEK 0.40) per redemption share. 

The acquisition cost of the remaining share will subsequently amount to SEK 99.60 (SEK 100 - SEK 0.40).

Example based on the standard rule 
The standard rule entails that the acquisition cost is equal to 20% of the net proceeds received for the redeemed or sold redemption shares of Class B, as these are considered to be listed. However, the Class A redemption shares are not regarded as listed and, accordingly, the standard rule cannot be applied to these.

If payment for one (1) Class B redemption share amounted to SEK 1.10 through sale or redemption, this corresponds to an acquisition cost of SEK 0.22 (SEK 1.10 x 0.20). Calculation using the standard method would thus generate a capital gain of SEK 0.88 (SEK 1.10 - SEK 0.22) per redemption share.

Further information about Sectra’s 2024 redemption share program 

About Sectra
Sectra contributes to a healthier and safer society by assisting health systems throughout the world to enhance the efficiency of care, and authorities and defense forces in Europe to protect society’s most sensitive information. The company, founded in 1978, is headquartered in Linköping, Sweden, with direct sales in 19 countries, and distribution partners worldwide. Sales in the 2023/2024 fiscal year totaled SEK 2,964 million. The Sectra share is quoted on the Nasdaq Stockholm exchange. For more information, visit Sectra’s website.

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