How do we determine the date of acquisition of stock certificates resulting from capital increases?
For the taxation of income resulting from the disposal of stock certificates, the date of acquisition of the stock certificates that are obtained through adding the capital and profit reserves to the capital will be based on the date of acquisition of the previous stock certificates.
E.g. Mr. (A) bought 1000 stock certificates of (B) Incorporated Company on 03.02.1999. (B) increased his capital by 50% to be fully covered from the capital reserves on 09.03.1999. Mr. (A) bought 500 stock certificates after this transaction. 03.02.1999 will be the basis of the date of acquisition of these 500 stock certificates.
When companies aim to increase the capital, the partners take the stock certificates that represent the increased capital by means of exercising their rights of priority. In the case where the partners sell the stock certificates that represent the capital increase by means of limiting their rights of priority, it will be deemed that a new purchase transaction took place.
Source: Income Tax Law Numbered 232
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