Replies to post #89033 on Sino Agro Food Inc (fka SIAF)

[Kaffe]

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)

This I am aware of of course. But just think what will be the impact of buyback... Yes correct higher share price... What happens when you sell the share with higher share price? ... Yes you tax the capital gain. Hence the same tax effect as dividend (given same tax rate applies)