Nominal value repayment

Nominal value repayments are special corporate actions, particularly known in Switzerland, for which no taxes are incurred when they are booked in the Infront Portfolio Manager and the portfolio does not change. However, the commercial cost value is corrected.

Definition: Par value reduction in Swiss company law

The distribution of a Swiss AG can generally take the form of a dividend or a repayment of par value. In the case of a nominal value reduction, the nominal value of the share is reduced by a certain amount, which is paid out to the shareholders instead of a dividend. The share capital is reduced by the corresponding amount. In contrast to a dividend, the par value repayment of a Swiss company is not subject to withholding tax or income tax for a shareholder resident in Switzerland who holds the shares as private assets and is not considered a professional securities trader. Shareholders domiciled abroad are also not subject to withholding tax, while the income tax issue is regulated differently depending on the country.

Proceed as follows to enter a nominal value repayment:

1. Open the "Enter transactions" worksheet as described above in the section Enter transactions and select the desired holder if necessary.
2. Open the DEPOT menu in the "Enter transactions" worksheet.
3. Go to Depot transaction types and select the transaction type NOMINAL REPAYMENT.
   

   Use the keyboard to enter a nominal value repayment with the "Enter transactions" worksheet open as follows: Press the key combination <CTRL>+<1> for the securities account transaction types. Then press the <N> button.

   The "Nominal value repayment" dialog box appears.
   

   

4. Complete or change the information in the fields if necessary. Details on the "Portfolio", "Date" and "Additional information" fields can be found in the table in the section Purchasesection, as they correspond to these. Please refer to the following table for details on the "Repayment" field:
   

   Element	Description
   Securities	Enter the name of the security for which the nominal value repayment is to be posted here, or search for a security using the object search by pressing the <RETURN> key or clicking on the "Search" icon. You can also create a list of securities here by entering part of the name and then pressing the <RETURN> key or clicking on the "Search" icon. Security objects are always required for transactions. Use storage locations to differentiate stock. The valuation of securities positions is always based on one and the same valuation price quotation.
   Select a security from the securities portfolio	You can use this function to quickly select securities from the securities account specified above (and the depository, if applicable). To do this, select the icon and then select the desired security from the list of securities in the securities account that appears.
   Repayment currency	If necessary, select a different repayment currency here.
   Stock	If you have selected a security from the securities account, the number of units is displayed here
   Amount/piece	Enter the amount for a security here or enter the total amount for all securities in the portfolio below.
   Total amount	Enter the total amount for all items in stock here. If you have entered an amount per item, the total amount will be calculated automatically.
   Exchange rate	The exchange rate between the repayment currency and the account currency is displayed here. If the repayment currency selected above differs from the account currency, this input field becomes editable and you can overwrite the calculated exchange rate with the exact exchange rate from the transaction if necessary.
   Ausm. Amount	After entering the fields, you will see the calculated amount here.

5. If you confirm the entries with "Enter", the nominal value repayment is posted.