Sweden - 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 2023.
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 (SKV A 2023:13) issued by the Swedish Tax Agency
According to the general advice issued by the Swedish Tax Agency regarding the redemption program, 99% of the acquisition cost for an original Class A or Class B share in Sectra AB should be attributed to remaining shares and 1% to the 2023 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 2023. 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, 1% is to be allocated to the 2023 redemption share as the acquisition cost. In this example, this corresponds to SEK 1 (SEK 100 x 0.01). 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 0.10 (SEK 1.10 - SEK 1) per redemption share.
The acquisition cost of the remaining share will subsequently amount to SEK 99 (SEK 100 - SEK 1).
Example based on the standard rule
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 these.
The standard rule entails that the acquisition cost is equal to 20% of the net proceeds received for the redeemed or sold redemption shares.
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 1.00 - SEK 0.22) per redemption share.
About Sectra
Driven by knowledge and passion, our vision is to contribute to a healthier and safer society. Sectra successfully develops and sells cutting-edge solutions in the expanding niche segments of medical IT and cybersecurity. The Sectra Group has some 800 employees worldwide.
Contact:
Tel: +46 13 23 52 00
Fax: +46 13 21 21 85
Email: info@sectra.com
SECTRA AB 
