Cost Value of Stock Certificates Obtained Through Capital Increase
In the case where the companies increase the capital with capital reserves, the cost value of stock certificates that are either previously obtained or obtained through the increase of capital will be determined by splitting the cost value of previously owned stock certificates to the number of stock certificates obtained after the increase of capital.
E.g. Mr. (A) bought 100 stock certificates of (B) Incorporated Company for TRY 45.000.000 on 03.02.1999. (B) Inc. increased its capital by 50% to be fully covered from the capital reserves on 09.03.1999. 500 stock certificates were given to Mr. (A) following this transaction.
Therefore, the cost value of every stock certificate that Mr. (A) obtained after the increase of capital will be TRY 30.000 by splitting the paid TRY 45.000.000 to the total number of stock certificates.
If the capital is increased through using the profit reserves, the cost value of stock certificates obtained through this transaction will be calculated by splitting the sum of cost value of previously owned stock certificates and the nominal value of the newly purchased stock certificates to the total number of stock certificates obtained after the increase of capital.
E.g. Mr. (A) bought 1000 stock certificates, whose nominal value is TRY 1.000, for TRY 15.000.000 from (B) Incorporated Company on 03.02.1999. (B) Inc. increased its capital by 50% to be fully covered from the capital reserves on 19.02.1999. Mr. (A) was given 500 stock certificates for this transaction.
The cost value of every stock certificate that Mr. (A) obtained after the increase of capital will be calculated as TRY 10.333 [(15.000.000+500.000)/ 1.500=] by splitting the total nominal price of stock certificates obtained through the increase of capital by paying TRY 15.000.000 for 1.000 stock certificates [(500×1000=) TRY 500.000], to the total number of stock certificates [(1.000+500)=1.500].
When companies aim to increase the capital in cash, the cost value of stock certificates which were obtained through paying their nominal values through owners’ exercising their right of priority will be calculated by splitting the total of cost value of previously owned stock certificates and the cost of newly purchased stock certificates to the number of stock certificates that are obtained after the increase of capital.
Source : Income Tax Law Numbered 232
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