Generally, payments made to shareholders for capital reductions implemented in connection with the write-down of nominal value will be taxed as a dividend. However, the part of the payment that constitutes a repayment of paid-up share capital and premium will not be taxed as a dividend.

In conjunction with capital reductions, there can be made payments that are greater than the amount by which the share capital is reduced. Typically, these are payments from taxed funds. Payments exceeding paid-up share capital and premium will be taxed as dividend. Even if the payment does not exceed the reduction amount, it will still be taxed as dividend if a bonus issue has previously been made within the company.

How can I find out if I have shares in a company that has implemented this type of capital reduction?

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

How does this affect the input value?

If the payment is considered  dividend (see above under the description), the input value will not be affected by the event. However, the part of the payment constituting the repayment of paid-up share capital and any premium will reduce the input value by the repaid amount.

Depreciation of capital in connection with the write-down of the nominal value of shares, but without with repayment to shareholders

How can I find out if I have shares in a company that has implemented this type of depreciation of capital?

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

How does this type of depreciation of capital affect the input value?

Such events do not affect the input value of shares. The input value remains unchanged.