Ränteförmån

Benefit of interest free and low-yield loans

If an employer or client provided an employee or contractor in favor of interest-free loan or loans where the interest is below market rate, the employee or contractor is taxed on the value of the benefit as income of the service. With loans from the employer or client assimilated other loans if there is reason to believe that the employer or principal conveyed the. Although loans which can be considered to be related to previous employment or contracts are treated as loans from the employer or client.

With loans in this context means a monetary transaction based on a credit agreements. This means that neither advances of salary or assignment replacement or normal credit purchase the employer or principal should be considered loans. On the other hand, are both covered short-term loans and loans of smaller amounts the rules (jfr prop. 1981/82:197 with. 60). As loans considered in this context Cash Loans submitted in violation of company law, sk. prohibited loans.

Preferential taxation requires loan at the time the parties confer a benefit and the benefit obtained as a result of service or mission. For employers who in his regular business offers loans to the public arising from a taxable fringe benefit if employees are offered loans on more favorable terms than those that the public is. For other employers, that do not perform credit, a comparison with the market conditions for credit agreements in force at the time (prop. 1990/91:54 with. 303).

Of critical importance for the assessment is loan terms, ie. about loan has been made on terms that are more favorable than the prevailing market. This applies not only to interest rate conditions but also other conditions. The comparison is made at the time of the loan between the agreed interest rate and market for comparable loans. Changed conditions at a later date is considered a new credit agreements have been concluded and a new assessment must be made in favor of the question.

In connection with the favorable loans also benefits other than interest rate conditions affect the taxation under income from service. The examples given by the employer at a declining interest rates, allowing the employee to prematurely redeem a FIXED-TERM LOAN term or reduces the rate. This benefit corresponds to the case, the cost to the lender at market rates charged (prop. 1992/93:127 with. 41).

Valuation of preferential loans in Swedish kronor

Fixed rate loans m.m.

For fixed rate loans, interest-free loans or floating rate debt where the interest rate to be paid in fixed relation to market, calculated benefit value of the difference between government bond yield at the time of the loan plus one percentage point and at the same time agreed rate. The estimated benefit value is valid for the duration of the loan runs under constant conditions. It may happen that a loans is favorable, because the agreed interest rate is below market rate, but where no tax value does not arise because the benchmark interest rate to fall below the agreed interest rate. In such cases, nor any subsequent tax value to be applied, if loan terms amended so that a new agreement is deemed to exist (prop. 1992/93:127 with. 56).

With loans with a fixed interest rate provided loans running with a predetermined interest rate throughout the loan period (loan villkorstid). As an example may be a five-year restricted mortgages where rate for the entire five-year period identified as such. 3,50 %. This also interest-free loans. This group includes also loans where the rate is determined in a fixed relationship to the market. with the provided example. that the interest rate during a specified period shall be payable at a rate of interest on each occasion is one percentage point below the market rate for the type of loans as regards (Board Bill. with. 55—56).

Have fixed rate loans m.m. taken before 5 december 1986, ie. before government bond yield introduced as fixed term, to which comparison rate instead applied it to the time of the loan current market rate for loans of the same type as the basis for government bond yield plus one percentage point.

Other loans

For other loans, ie. floating rate debt that should not be valued in accordance 15 §, valuation is done as a 'rule of 61 Chapter. 16 § THE. Amount of the benefit value is calculated as the difference between government bond yield At the end of November of the year preceding the taxation year plus one percentage point and the agreed rate for the taxable year.

In 16 § second paragraph states that the recent interest rate changes occurred in some cases be considered. Has government bond yield At the end of May in the fiscal year change - up or down - at least two percentage points compared to the situation existing at the end of November the year before the tax year, the benefit value for the period July – December tax year, calculated as the difference between government bond yield At the end of May, the tax year, plus one percentage point and the agreed interest rate.

At the end of November 2009 was government bond yield 3,20 %. For fiscal year 2010 (all or part of, see above) the benefit value thus calculated as the difference between 4,20 % and the agreed interest rate.

Valuation of favorable foreign currency loans

In the case of loans in foreign currency the taxable benefit is calculated on the same valuation rules that apply loans in Swedish currency with the modification that the benchmark interest rate, instead of government bond yield plus one percentage point, to be the market rate for loans in the relevant currency, plus one percentage point. With market interest rate means the interest rate paid on risk-free long-term investments, ie. the rate that closely matches government bond yield (prop. 1990/91:54 with. 304).

For a loans shall be included in foreign currency the borrower (the employee) stand the s.k. currency risk.

The Tax Agency (IN A 2008:32) states: “When calculating the benefit value for preferential loans in foreign currency, which bears variable interest rate, , the following comparative rates (market interest rate At the end of November 2008 plus and procentenhet) applied for the full fiscal year 2009, unless interest rates at the end of May during the tax year to the contrary.

Deductions for interest expense

An amount equal to interest benefit value shall be considered as paid interest expense. This means that the amount taxed and actually paid interest rate is deductible expenses as income from capital. The right to deduct incurred for the year in which tax liability arises.