Loan tax. When should I pay it?

21 Mar

By law, the conclusion of a loan agreement entails the payment of a tax. However, this obligation does not apply to clients of non-banking companies. So when should the consumer prepare for such payments? Check!

The loan agreement is subject to taxation under the Act on tax on civil law transactions. Currently, the amount of such tax is 2% of the loan amount. However, the tax obligation applies only to the situation when the loan agreement is concluded by private persons who do not conduct any activities in this respect. Thus, a person who makes use of loan support granted by various financial institutions is exempt from paying tax on this account.

A loan from the family. The rules of tax exemption

A loan from the family. The rules of tax exemption

In accordance with the aforementioned principles, taking a loan from someone in the family theoretically raises the obligation to pay tax. In certain situations, however, the law provides for exemptions from such fees also in such a case.

  • Loans contracts concluded between persons belonging to the first tax group are exempt from taxation. This group includes spouses, descendants, ascendants, stepchild, son-in-law, daughter-in-law, siblings, stepfather, stepmother and in-laws. The abolition of tax liability for persons belonging to the first tax group concerns only loans up to PLN 9,637. What’s more, this limit includes all the commitments we have obtained from the person over the last five years.

And what if the loan from the nearest in the first tax group exceeds PLN 9,637? Contrary to appearances, also in this case you can count on a tax exemption.

  • If we borrow money from the spouse, descendants, ascendants, stepchildren, siblings, stepfather or stepmother, the fact of concluding the loan agreement should be reported to the competent Tax Office within 14 days. This notification is made using PCC-3 printing. In addition, the borrower must also provide proof of funds, e.g. a bank statement.

In the case of other people who are part of the first tax group, a loan exceeding the limit will result in the payment of tax.

A loan from friends. The rules of tax exemption

A loan from friends. The rules of tax exemption

The Act on tax on civil law transactions also provides exemptions from fees for those who take out loans from persons other than family members or institutions that do not conduct lending activities on a daily basis. Exemption from tax is therefore available to all persons who:

  • they borrowed up to PLN 5,000 from one person or up to PLN 25,000 from several people in three consecutive years;
  • they have used a loan from vaults or company funds.

Remember to document the loan!

Remember to document the loan!

Conclusion of a loan agreement with a private person or an institution dealing with activities other than lending, should each time be submitted to the Tax Office competent for the borrower within 14 days. To submit a loan, you must complete the PCC-3 print. This rule applies both when you have to pay tax and when you are entitled to a tax exemption. In addition, in the case of loans exceeding PLN 9,637, the borrower should calculate the tax himself and must pay it within two weeks of obtaining the loan.

If you do not sign a loan and you do not pay the obligatory tax, you must be prepared to impose a financial penalty on you. In such situations, the borrower imposes the so-called sanction tax rate, which is 20% of the loan amount. So it is a rate ten times higher than the standard loan tax. So it is better not to shirk tax for a loan, because the consequences resulting from this title can be very painful for you.

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