Bonus Share
| Date | Event | % | Value assigned * |
|---|---|---|---|
| 04/29/2011 | Bonus Share | 20% | R$0.60 |
| 04/29/2011 | Reverse Split | 66.666% | – |
| 04/20/2012 | Bonus Share | 20% | R$ 2.16 |
| 04/26/2013 | Bonus Share | 20% | R$ 3.82 |
| 03/31/2014 | Bonus Share | 100% | R$ 1.27 |
| 04/13/2015 | Bonus Share | 20% | R$ 1.59 |
| 04/08/2016 | Bonus Share | 20% | R$ 2.65 |
| 04/12/2017 | Bonus Share | 20% | R$ 2.65 |
PROCEDURE TO DECLARE BONUS SHARE ISSUES IN THE INDIVIDUAL INCOME TAX RETURN (IRPF)
Bonus share issues should be included in shareholders’ annual income tax return at the unit cost, under Exempt and Non-Taxable Income, in the Profit and Dividends Received line. This amount should be added to the historical cost of shares in the Assets and Rights section.
Example:
On January 1, 2017, a shareholder held 1,000 common shares of Cielo S.A. (CIEL3), which were declared in his income tax return at the cost of R$30,000.00 (amount paid to buy said shares).On April 12, 2017, a bonus issue of 20% was approved, to be credited to shareholders according to their shareholding on April 12, 2017.
If the shareholder had maintained his position (1,000 shares), he received 200 bonus shares (a 20% bonus applied to the 1,000 shares held) and now holds 1,200 shares.
As published in the Notice to Shareholders, the unit cost of each bonus share of Cielo S.A. was R$2.65. As a result, the total cost of the bonus shares received by this shareholders is R$530.00 (unit cost of R$2.65 multiplied by the 200 bonus shares received).
This amount must be declared in the income tax statement under the Exempt and Non-Taxable Income section, in the Profit and Dividends Received line, as well as added to the historical cost of shares in the Assets and Rights section.
In the above example, the shareholder who, on December 31, 2016, had declared in his income tax return a historical cost of R$30,000.00 for the ownership of 1,000 shares, now has a cost of R$30,530.00 for his 1,200 shares.
When he sells these 1,200 shares, he should consider the new historical cost for the shares, i.e., R$30,530.00 when calculating the income tax on capital gains.