Recording participations

Step by step

1. 1Choose Trading to buy or sell an interest. For a new interest, record its name, currency, quantity, application of the participation exemption and classification as a group company, another related company or other participation.
2. 2Use Income for dividends in cash or shares. Copy the gross dividend, fees and withholding, and for shares enter the interest and quantity received. A participation dividend belongs here, not in ordinary Shares or ETFs.
3. 3Use Events for capital or share-premium contributions, capital repayments, liquidation distributions, completing liquidation, conversions or exchanges. Record liquidation distributions before completing liquidation.
4. 4When completing liquidation, enter the tax basis, all liquidation distributions, the determined deductible loss, deduction year and supporting explanation. Carrying value and tax basis can differ. Example without extra fees or reserves: before liquidation distributions, carrying value is €6,000 and tax basis is €10,000. After €2,000 distributions, €4,000 carrying value remains. Completing liquidation records that as the book loss, while the possible tax loss before restrictions is €8,000.
5. 5If application of the participation exemption changes, use the separate event for that change. Record the effective date, determined value, reserve and supporting explanation. For later distributions, enter the requested allocation to earlier reserves.
6. 6Specify existing holdings using Opening position. In Year-end value, an exempt participation remains at cost. For a non-exempt participation, enter the determined tax carrying value and supporting explanation. Participations are outside the Joint valuation screen.

What is on the screen?

• Interest, quantity and classification
• Participation exemption and tax basis
• Liquidation distributions, deductible amount and year
• Determined value and tax reserves

What happens next?

You see the accounting effects and recorded tax details of the interest. The possible liquidation loss is shown; you confirm the deductible amount yourself.

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