►When a company cancels treasury shares, the market value of the company's portfolio of treasury shares is reduced at the beginning of the year of taxation. The portfolio must be reduced by the market value of the cancelled shares at the beginning of the year of taxation.◄

►A company which cancels treasury shares must separate the acquisition sum for the cancelled treasury shares when determining gains and losses for the year of taxation in which the shares are cancelled. ◄

The separation is based on the ratio between the cancelled treasury shares and the shares which the company keeps.

►When the company cancels shares acquired during the year of taxation, the company must calculate the acquisition sum for the cancelled shares in the following way:◄

►The acquisition sum for all the company's treasury shares acquired during the year of taxation is distributed proportionately between ◄

►
• the cancelled shares and
• the acquired shares which the company keeps.
◄

►Only the shares acquired in the year of taxation before the cancellation must be included in the distribution. ◄

►Cancellation of treasury shares is deemed to take place proportionately between shares owned at the beginning of the year of taxation and shares acquired during the year of taxation.◄