Změna jmenovité hodnoty akcie a časový test

The Supreme Administrative Court recently ruled on the interruption of the time test for holding shares by an individual in the case of an increase in the nominal value of shares through their revaluation.

An individual acquired shares in a company in 2011. In 2014, the company decided to increase its share capital by 10,000,000 CZK. This increase was achieved by revaluing the existing shares, resulting in an increase in their nominal value from 20,000 CZK to 120,000 CZK.

In 2016, the shares were sold to a third party, which the taxpayer reported in the submitted notification of exempt income. The taxpayer claimed the exemption related to the income, arguing that the revaluation did not interrupt the three-year time test between the acquisition and the taxable transfer of the security.

The Supreme Administrative Court confirmed its previous conclusions regarding the impact of an increase in the nominal value of shares on the exemption of income from their sale. According to the Supreme Administrative Court, the time test is not interrupted only when the nominal value of the security does not change during the exchange. If the nominal value of shares is increased, whether through their exchange for new pieces or by revaluing existing shares to a higher nominal value, the time test is interrupted.

Authors:

Stanislav Kafka

Jana Vodehnalová