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Mr. Fister

05/19/15 5:39 AM

#89033 RE: Kaffe #89032

There are no tax effects for shareholders if a company buys back its own shares from the market.
They use their profit (same as for for paying down debt) and can either hold shares as treasury (or give them to employees etc), or they can “delete” shares and thus make shareholders own more of the pie from what I understood => higher EPS.

Dividends on the other hand will make you as a shareholder pay dividend tax/capital gain tax (I think in Sweden and Norway it's the same %-rate for both taxes. 27% in Norway)