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V2157-18 ·18 July 2018 ·consulta-vinculante Medium impact
Tax

Company loans with below-market interest rates constitute benefits in kind

An employee of a credit institution enquired whether personal and mortgage loans received at reduced interest rates constituted benefits in kind. The DGT ruled that they do, as they represent an advantage derived from the employment relationship.

In 5 key points

How it affects those involved

Employers must treat the difference between the market interest rate and the rate applied to employee loans as taxable benefits in kind.

Lifecycle

2018-07-18PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
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