Nominal value
Tax value
The stocks of
Forests for
Friends Ltd. can be
freely traded. There is no public market. The
company is not listed on a stock exchange.
Therefore, the time value of the stock is
not easy to determine.
The long-term yield depends mainly on the development of the price for plantation teak, the rate of inflation, the US-dollar fluctuation, and the increase in the value of the land. Forecasts over 10 or 20 years are not serious. Periodical re-evaluations and thus fluctuations are necessary
and are carried out regularly.
Tree plantations retain and increase their value only if they are regularly maintained and cultivated. The company must guarantee the financial resources for the entire period. Two models of payment by the investors are possible: the periodic payment of the maintenance costs or the prepayment for the entire period. Forests for Friends' model is that of pre-payment.
Nominal value
...is a formal part of the share. It is 100 Swiss Francs. It is the value of the share without the surcharge (agio) at the time it is bought and this is the value registered in the commercial register. It has nothing to do with the market value of the share. The nominal value becomes interesting, when capital is paid back to the shareholders. In many countries, the payback of the nominal value is not regarded as income and is thus tax exempt.
Tax value
Unfortunately, the answer to the question about the tax value of our share is neither easy nor clear-cut. In Switzerland, the situation is as follows:
The tax value on 31st December is usually the same as the closing stock price of the last trading day of December (source: Telekurs Financial). If there is no such price available, the last available price is taken (Art. 66, Abs. 1 StHG).
Non-listed security, i.e. not traded on a stock exchange, must be declared at the fair market value (tax value) at 31st December. If this value is not known at the time of handing in the tax declaration, the last-known tax value can be declared (tax value at 31st December of the previous year), subject to adjustment by the tax authorities.
Source: SR 642.14: Federal law of 14.12.1990 on the harmonisation of the direct taxes of the cantons and communities (StHG)
Our share was issued in 2006
and is not listed. The tax office of the Canton
of Glarus defined a
net tax value of CHF
71.40
per share per the 31st
December 2021.
Until the announcement of the tax value for 2022
you can use the value of 2021
for your tax declaration.
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