The capital reduction implemented in connection with the redemption of individual shares is regarded as a realisation. An ordinary gain and loss settlement must be performed for the shares that are redeemed (see below under "Capital reduction in connection with the redemption of individual shares with repayment to shareholders with no change in ownership share" in cases where a proportional redemption is made for all of the shareholders' shares in the company and where companies with only one shareholder redeem shares).

Where can I find out if I have shares in such companies?

A notification will have been submitted to the Register of Business Enterprises, and the capital reduction will have been registered there. You'll also find details of this in board meeting minutes and general meeting resolutions.

How is the input value affected?

Such an event will not affect the acquisition value of the remaining shareholding. The original acquisition value of the remaining holding will be the same both before and after the event.

For example: 
You purchased 1,000 shares for NOK 50,000. Later, you redeem 400 shares for NOK 10,000. The 400 shares will be the subject of a gain/loss settlement, where you receive a deductible loss of NOK 10,000. The remaining holding of 600 shares still has a total acquisition value of NOK 30,000.

Capital reduction in connection with the redemption of individual shares with repayment to shareholders without changing the ownership share

Such a capital reduction in connection with the redemption of individual shares may be made through:

• a proportional redemption of all shareholders' shares in the company, or
• through a redemption of some of the company's shares (and the company only has one shareholder)

In such cases, the shareholder will not be considered as having surrendered any part of his ownership interest in the company. Such redemptions will not trigger realisation tax.

Consequently, no gain or loss settlement will be made for the redeemed shares.

Where can I find out if I have shares in such companies?

A notification will have been submitted to the Register of Business Enterprises and the reduction in capital will have been registered there. You'll also find details of this in board meeting minutes and general meeting resolutions.

How does this affect the input value?

You'll face a loss situation if the amount you receive in connection with the redemption is less than the paid-up capital on the shares. As you cannot deduct this loss in connection with the redemption of the shares, you must upwardly adjust the input value of the remaining shares. The upward adjustment amount is defined as the difference between the paid-up capital on the shares redeemed minus the amount you received in connection with the redemption.

If the amount you receive in connection with the redemption is higher than the paid-up capital on the shares redeemed, the input value will lapse for the redeemed shares. The difference will trigger dividend taxation.