January 17, 2018

The tax tip: If the employer lends money

The advantages resulting from interest-free or low-interest company loans are subject to taxation by the employee as a cash benefit. For the determination, there are two evaluation methods. The advantages resulting from interest-free or subsidized Company Loans are taxed by the employee as a cash benefit. For the determination of cash benefits – which arises when the employer his employee leaves a soft loan – there are two different evaluation methods: One applies when the employer operates not originally banking, so for example is not even a bank. And one engages in the case in which the employer provides loans of the same type and the same conditions also to…