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A member of the Armed Forces enquired whether interest-free advances from Army Social Action, repayable via payroll, constitute benefits in kind. The Directorate-General for Taxes (DGT) ruled that, as they are repayable in several instalments, they constitute a benefit in kind due to the advantage of the interest-free loan.
This ruling clarifies that the financial benefit derived from interest-free loans provided by an employer is taxable as a benefit in kind, even when repaid in instalments.
The tax team reviews your specific situation.
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