An interest-free loan is a service that many people can use. However, it is worthwhile to understand that such a loan entails certain results and consequences.
Statistics show that almost every resident of Russia at least once used credit funds, that is, almost everyone is familiar with the rules for obtaining a loan. An interest-free loan is somewhat similar to a loan, but it is drawn up as an agreement, which is signed by two parties. It is assumed that one of them gives the use of another to money or other items of mass production. The main responsibility of the borrower is to return the thing or the right amount of money in the specified period.
It should be remembered that such loans are interest-free and interest-bearing. If the interest-free loan, in accordance with its name, involves the repayment of the same things or the same amount, then it is necessary to stipulate in advance in the agreement the obligation to provide the legal or natural person who provided the loan with additional interest.
In the case when the agreement is drawn up correctly, any aspects are taken into account, then there will not be any problems when repaying the debt.
Features of this agreement
The nuance is that such an agreement can be signed on both sides by one person - the owner of the company and the company represented by the owner. This approach is completely legal.
Quite often, interest-free loans have a special purpose. This means that funds can only be spent on certain services or goods. All such aspects are reflected in the loan agreement, any non-targeted expenses are excluded.
Thus, a loan can be issued to an employee of the company, the contract for its provision clearly indicates the targeted spending of money. There are many important aspects of an interest-free loan, as well as the cost of a loan.
Initial concepts
There are certain concepts and terms that should be studied before applying for such a loan. It is worth noting that over time they do not change:
- A loan is a certain amount of funds that one party to the agreement transfers to another, but a prerequisite is the return of these funds at a specified time in an established amount.
- Gratuitous loan. In this case, money is transferred from one company to another, and on a free basis. Such a nuance must be specified in the contract. Otherwise, the borrower will have to pay interest. An important condition is the repayment of funds: the borrower will have to return the money taken in the same amount as he took, and at the indicated time.
- Loan agreement. This document stipulates all the conditions for granting a loan - the body of the loan itself, repayment terms, interest on the loan. The loan agreement serves as the basis for the repayment of money by the borrower in the specified period, as well as the need to pay interest.
- Interest tax deduction. Funds that can be returned during the year following the reporting year.
That is, before a cash loan and an interest-free loan, you should study the basic definitions, postings. Only then can a decision be made about the possibility of such operations.
The importance of the procedure
Due to the fact that many individuals often use loans, they are relevant among people and companies, and interest-free loans have also gained popularity. In the process of drawing up such an agreement, it is possible that certain taxes will be paid. If it turns out that the borrower is not able to repay the borrowed funds within the term specified in the agreement, penalties may be imposed on him. They are also indicated in the interest-free loan agreement.
Writing only
Under no circumstances should such agreements be concluded orally. They must be confirmed legally. To do this, it will be enough just to study simple loan agreements.
After drawing up the agreement and its signature, you should contact the notary for certification. In addition, you can draw up a receipt that confirms the transfer of funds. Before making such a loan, it is important to study the rules for paying personal income tax on an interest-free loan, as well as the timing of its payment.
Features of registration and issuance to individual entrepreneurs
The design of this procedure has many nuances. Before issuing an interest-free loan to an individual entrepreneur or an individual, one should take into account his income as a person paying taxes. Moreover, keeping records should be not only in cash, but also in kind.
In the case when a person receives income perceived as a material benefit, the date of actual receipt of this benefit will be the day of payment of interest on borrowed funds. If we talk about interest-free loans, it is important to consider the date of repayment of the loan. If a loan is issued to an individual entrepreneur, then the period during which he will use the issued funds will be indexed at a rate of 35% of personal income tax.
Spouses agreement
The situation is somewhat different if the interest-free loan agreement is signed by spouses, each of whom is an individual entrepreneur. In this case, material benefits due to interest savings will not be received.
It is important to remember that taxpayer status involves the application of a common property regime between spouses. In fact, such a regime applies to all income received by a married couple. In essence, this money cannot be borrowed, because it is the property of both people. The funds received by one spouse from another, which is an individual entrepreneur, are their joint property, that is, they are not income that could be considered when applying for personal income tax.
Extradition Goals
The purposes for which interest-free loans are issued to individuals or organizations may not be indicated in the agreement. If general concepts are considered, then the loan can be targeted and non-targeted. As a rule, when drawing up such an agreement, the person who needs a loan indicates for what purpose he intends to spend the money. For example, it can be the acquisition of real estate, automobiles, equipment, training, treatment, repairs and more.
In the case when an interest-free loan is issued to the enterprise, the purposes for which the funds will be spent can be clearly agreed. It is noteworthy that the funds received can be sent exclusively to the direction indicated by the borrower. In nasty situations, misuse of funds may be noted. The result will be considerable problems for the borrower.
Interest-free loan for employees
Many organizations practice drawing up an interest-free loan agreement to an employee. This information will be relevant for people who want to get money from their employer. Employees of the company can count on receiving a loan from the employer for treatment, training, rest, and other purposes.
To obtain the necessary funds, you should take consent to the issuance of funds from all owners of the organization. Practice shows that in many cases such loans are issued for specific purposes. This means that the agreement will contain information on where to spend the funds received.
Such an agreement on an interest-free loan to an employee is actually a model, it is freely available, and it is easy to get acquainted with it. In the opposite situation, when it is assumed that the organization will receive a loan from its employee, the documents should be issued in a different way - as a transaction between a private investor and an enterprise.
Interest-free housing loans are often issued.
Housing loan
Many organizations practice financial support of their employees in order to purchase a house or apartment. How to arrange an agreement in order to get an interest-free loan for the purchase of real estate?
If such a loan at work is a settled matter, you can write a statement. This procedure is not difficult, since the document itself is executed in any form. At some enterprises it is accounting. But it will not be superfluous to consult with specialists when writing a paper.
The document indicates:
- the desired loan amount, the time of its return;
- what will the issue of interest-free loans be directed to;
- the conditions under which the loan will be used;
- the position of the employee who received the interest-free loan;
- any other valuable information in which the issuance of a loan is approved.
The application should be submitted to the accounting department, after consideration it will be transferred to the organization’s directorate.
The issuance of interest-free loans to an employee is not necessarily associated with the acquisition of housing. But most organizations issue loans specifically for these purposes.
Loan forgiveness
If a person is interested in obtaining an interest-free loan, in particular, if we talk about the loan of the employee from the employer, then he should study such a thing as debt forgiveness. The employer has the right to decide on the forgiveness of the loan taken, but one should not hope that the issue of paying taxes in this case will not be raised.
What should an employee pay?
When a decision is made on forgiveness, the employee who took the loan will have to pay:
- Tax on the amount closed at the initiative of the organization.
- Tax on the amount that a person saved without paying interest on the loan.
- Income tax.
Such a loan is a rather slippery and controversial concept. It is important to consider all the nuances before getting an interest-free loan.