Conclusion of a loan agreement between an organization and an individual

Situations often occur when an employee asks the employer to give him a cash loan on an interest basis, or vice versa - the company attracts a loan from a private person. How legal are such procedures and how to formalize them correctly? We will tell you within the framework of this article.

Let’s assume that one of your employees contacts you as an organization with a request for a loan. In principle, you are not against it, but your main activity is selling food and has nothing to do with financial services.

What is an interest-free loan

When there is a transfer of money or things defined by generic characteristics from an individual to a legal entity, this procedure is called a loan to a legal entity from an individual. This means that funds, depending on what agreement the parties to the transaction have reached, can be taken over without interest or with interest. In other words, if the parties to the agreement decide that the loan is provided on an interest-free basis, then the borrower will only need to repay the loan itself within the agreed period.

The borrower has the right to use the funds that the borrower received from the loan holder at his own discretion. But the lender can still limit the debtor - for this purpose, the purpose of using the funds is specified in the agreement. In this situation, an individual has the right to control how the provided funds are used. And the organization has no right to resist this process.

It is important to know! At first glance, the procedure for concluding a loan agreement is not accompanied by any difficult issues, but tax services closely monitor enterprises using funds on an interest-free basis. And there are serious reasons for this - organizations in this way can simply launder (legalize) their own income.

In the field of civil transactions, interest-free loans to a legal entity from an individual are becoming increasingly popular. For example, the company did not have enough funds in its accounts to pay off accounts receivable, and the manager decided to lend financial resources that personally belonged to him or one of the founders of the LLC. It is clear that the interest-free loan agreement in this situation does not stipulate any interest. The following development of events is also possible: the grandmother helps her grandson in starting his own business and lends his “startup” a certain amount to purchase office equipment, for example, and rent an office at first.

Corporate income tax

In the event of termination of the agreement (repayment of the debt obligation) during a calendar month, the expense is recognized as incurred and is included in the corresponding expenses on the date of termination of the agreement (repayment of the debt obligation).

Accounting

Features of the formation in accounting and financial statements of information on expenses associated with the fulfillment of obligations on loans received by organizations that are legal entities under the laws of the Russian Federation (with the exception of credit organizations and state (municipal) institutions) are established by PBU 15/2008 “Accounting for expenses on loans and credits" (hereinafter referred to as PBU 15/2008).

All companies and individual entrepreneurs need to submit some kind of statistical reporting. And there are so many forms of this reporting that it’s not surprising to get confused in them. To help respondents, Rosstat has developed a special service. using which you can determine what statistical reporting needs to be submitted to a specific respondent. However, unfortunately, this service does not always work correctly. Be careful: if you indicate the payer status code “14” in the payment order for the transfer of insurance premiums to the budget, the payment is guaranteed to fail. The Tax Service has changed its position regarding filling out field 101 “Payer Status” in payments for the transfer of insurance premiums.

Please tell me, the organization (OSN) took a loan from an individual, accrues interest to him monthly and, if possible, pays it to him. Is it necessary to submit 2NDFL certificates for an individual to the tax office at the end of the year and is it necessary to pay income tax on his income (i.e. on the amount of interest)?

Personal income tax is withheld from interest on a loan paid to an individual

Transferring funds to the borrowing company is usually used if the loan amount is relatively small. In this case, they are transferred to the organization’s cash desk, and the borrower receives a receipt for the cash receipt order, which will confirm the fact of the transfer of funds.

1. in the month when the loan is repaid - from the first day of the month until the day the loan is repaid;
2. in the month when the loan was issued - from the day following the day the loan was issued until the last day of the month;
3. in other months - as the calendar number of days in a month.

How to get a loan without interest between an individual and a legal entity

When the parties to the transaction have agreed that the funds will be provided for use without interest, then initially they will need to fix all the nuances on paper. It is recommended to formalize the agreement in writing, even if the amount is insignificant.

It is important to know! This type of agreement comes into force (begins to be effective) not on the date when the parties to the transaction put their personal signatures on it, but when the borrower received the funds. In most cases, this fact is confirmed by drawing up a receipt.

Let's look at the situation using a specific example from the practice of judicial authorities:

Citizen O. went to court with a demand to collect the debt under an agreement with M on an interest-free loan to a legal entity from an individual. The plaintiff stated that when the deadline for repaying the loan funds came, M. did not repay the full amount, but only part of the loan. At the court hearing, O. provided as evidence a receipt confirming the veracity of his statement. Defendant M. objected to the lender and stated that the receipt was drawn up on two sheets, and O. acted dishonestly and destroyed one sheet of the receipt, where it was stated that the debtor had returned the amount in full. But M. could not in any way provide evidence of the stated fact, and for this reason the court sided with the applicant and satisfied his demands.

The contract must include the following conditions:

1. Information about the participants in the transaction.
2. The period within which the loan must be repaid.
3. The amount of money or a list of transferred items.
4. Responsibility of the parties.
5. It should be stated in a separate paragraph that the loan is provided on an interest-free basis.
6. Final provisions.

If we consider the legislative framework, what is indicated there is that obligations under a loan agreement in monetary form must be displayed in the national currency - rubles. And if the loan was provided in foreign currency, the borrower must still repay it in rubles in accordance with the exchange rate. If this is exactly the situation you have, then it is recommended to specify in the contract the rate according to which the debt will be recalculated at the time of repayment.

Loan agreement 2020

You can focus on Article 811 of the Civil Code of the Russian Federation; 8. Force majeure events that may occur and the procedure for resolving disputes are prescribed.

It is imperative to indicate within what period of time one party must notify the other of the occurrence of force majeure; 10. Provide contact details and account details for transferring money; 11. Signatures of both parties, date. • the lender's right to early termination of the agreement if there is a violation of the payment plan by the borrower; • the lender's right to charge penalties for each day of delay in repaying the loan.

2. PKOs or payment orders only confirm the transfer of money, but do not prove the existence of borrowed obligations (determination of the RF Armed Forces in case No. 5-KG14-63). • Data about the borrower and lender: name, information about the executive body and the grounds for carrying out its activities.

Personal income tax is withheld from interest on a loan paid to an individual

Tax agents are required to withhold the accrued tax amount directly from the taxpayer’s income upon actual payment. The tax agent withholds the accrued amount of tax from the taxpayer at the expense of any funds paid by the tax agent to the taxpayer upon actual payment of these funds to the taxpayer or on his behalf to third parties (clauses 4, 6 of Article 226 of the Tax Code of the Russian Federation).

In accordance with paragraphs. 1 clause 1 art. 208 and paragraphs. 1 tbsp. 209 of the Tax Code of the Russian Federation, income received by a taxpayer in a tax period (calendar year) in the form of interest received from a Russian organization is recognized as an object of taxation for personal income tax.

The procedure for executing an interest-free loan agreement

All conditions for the return of funds or items must be included in the agreement. For example, you need to specify a specific date for repayment of the debt or refer to an event that is about to happen. In addition, funds can be transferred in full at once or transfers can be made in installments at certain periods.

It is important to know! If the contract did not indicate the date on which the debt must be repaid, the contract will be recognized as unlimited. What does it mean? The lender may demand the borrower to repay the loan at any time. And the debtor is given only a month to find funds.

Practice shows that a situation may arise when, due to certain reasons, the borrower cannot repay the loan funds. In this case, an individual has the right to go to court to terminate the agreement and demand the other party to fulfill its obligations under the agreement. If this happens, the costs of litigation fall on the shoulders of the debtor.

Remember that the statute of limitations is three years from the moment the loan holder became entitled to demand repayment of the loan funds. But if this period has come to an end, then this will only mean that the individual who provided the funds to the borrower loses the right to court protection. If, of course, he provides undeniable evidence that the deadline was missed for a good reason (illness, loss of ability to work). Then the loan agreement will not cease to be valid, and the lender will not be deprived of the right to demand the return of funds from the debtor.

Cash settlement limit under the loan agreement

If the subject of the loan agreement is cash, then the borrower and the lender must comply with the cash payment limit, which is equal to 100,000 rubles. in accordance with clause 6 of Bank of Russia Instructions No. 3073-U dated October 7, 2013 (hereinafter referred to as Instructions No. 3073-U). That is, this is the maximum amount of cash that the parties to the transaction can transfer to each other.

This limit applies to settlements under one agreement (clause 2 of Instructions No. 3073-U):

• between organizations;
• between the organization and the individual entrepreneur;
• between IP and IP.

Note! The cash settlement limit does not apply to settlements under a loan agreement with an individual who is not engaged in entrepreneurial activities (clause 5 of Instructions No. 3073-U). Therefore, an organization (IP) can borrow any amount of cash from its employee (or any other citizen), and vice versa.

For violating (exceeding) the cash payment limit, guilty persons may be fined under Article 15.1 of the Code of Administrative Offenses of the Russian Federation:

• legal entity - in the amount of 40,000 rubles. up to 50,000 rubles;
• officials - in the amount of 4,000 rubles. up to 5,000 rub.

What responsibility does the debtor bear?

The parties to the transaction have the right to provide in the contract a section on the responsibility of the parties in case they do not properly fulfill their obligations. For example, you can set up interest accrual for each day of delay. This can be done even if the loan is provided without interest. But if the parties have not indicated the responsibility of the parties, then it still exists, and this issue is regulated at the legislative level. In particular, in Art. 395 of the Civil Code of the Russian Federation indicates cases of using borrowed financial resources.

The procedure for challenging an interest-free loan agreement

The legislator provides for the possibility of challenging a loan agreement due to the lack of necessary funds. But only the judicial authority has the right to carry out this procedure. A statement of claim, in particular, can be filed by the borrower. His responsibility is to provide evidence that, despite the signed agreement (maybe there is even a receipt), the finances were not transferred.

It is important to know! If the agreement is concluded in writing, the testimony of witnesses at court hearings is not taken into account.

In order to prevent such a situation from developing, it is recommended to do the following:

1. The loan agreement must be properly certified by contacting a notary office. Although it is not stated anywhere at the legislative level that the agreement must be notarized, this method will allow you to be on the safe side. The notary will certify that the parties to the transaction voluntarily signed the loan agreement, and that there were no violent actions or threats.
2. The borrower needs to write down the following in the receipt: “The money was received at the time the receipt was written.”

A line should be drawn between two terms: invalidation of the loan agreement and contestation of the agreement. Challenging will be required due to lack of funds, and in no other situations. But the Civil Code of the Russian Federation provides for the possibility of declaring a transaction invalid. And here it does not matter what type of agreement took place. For example, if the contract was concluded by threats, blackmail, fraudulent actions, deceitfully, using violent actions. This is where the testimony of witnesses will be needed - they will be considered evidence.

The nuances of an interest-free loan between a legal entity and an individual

If a loan agreement is concluded without interest, then the lender, accordingly, does not receive any profit. For this reason, the organization using the loan funds must pay income tax.

If for some reason the debtor cannot fulfill its contractual obligations, and the loan holder goes to court and ultimately receives a decision to satisfy the demands, then after enforcement proceedings have been initiated, the bailiffs will be able to collect the debt from the following assets:

• At the expense of property assets owned by the organization.
• Cash held in bank accounts.
• At the expense of other assets.

Personal income tax on a loan to an individual in 2020

“On approval of the form for calculating the amounts of personal income tax calculated and withheld by the tax agent (form 6-NDFL), the procedure for filling out and submitting it, as well as the format for presenting the calculation of the amounts of personal income tax calculated and withholding by the tax agent in electronic form."

• staying in the Russian Federation for less than 183 calendar days within 12 consecutive months;
• whose period of stay on the territory of the Russian Federation is interrupted by periods of his departure outside the territory of the Russian Federation for short-term (less than 6 months) treatment, training, performance of labor or other duties related to the performance of work (provision of services) in offshore hydrocarbon fields;
• who are residents of a foreign state.

How does debt indexation work?

For example, the plaintiff received the decision of the judicial authority, enforcement proceedings are gaining momentum, but the borrower still does not return the borrowed funds, and it is not possible to apply any other methods of return due to the lack of property.

In this case, the legislative level provides for a mechanism to protect the interests of the lender in an unstable situation in the country’s economy. We are talking about indexation of the amount of money awarded by the court.

How this can be done:

1. The lender goes to the court that examined the case and made a decision and writes an application for indexation. There is no need to pay state duty.
2. The loan holder determines the indexation mechanism, since it is not regulated at the legislative level. In addition, you can use the consumer price index. You can find out this indicator in the territorial body of Rosstat. In addition, you can find out at what level inflation processes are and determine how much your money has depreciated.
3. The application must be accompanied by a calculation scheme and a package of documents on the basis of which the plaintiff came to the conclusion.
4. Within the framework of the considered case, the judicial authority issues a ruling that the application will be granted.

If a legal entity becomes bankrupt

It happens that a loan agreement has been signed, funds have been transferred to the borrower, the debt repayment period has arrived, but then the lender receives information that the legal entity is at the stage of bankruptcy. And now what i can do? Is it really impossible for a citizen to get his money back? Let's look at these questions.

The bankruptcy procedure begins with the fact that it is reported to the tax authorities and the media. Go to the official website of the Federal Tax Service and request information about the legal entity you are interested in. The necessary information will be available for you to review.

After information about bankruptcy is published in the media, the appointed managers in this case will begin accepting the debtors' claims. In most cases, 30 days are allocated for this procedure. During this period, you need to have time to contact the organization that is the debtor with an application or claim. Your application will be assigned an appropriate queue and after the sale of all available assets, the funds will be returned to you. But if you did not manage to apply within the designated period, it is recommended to go to court in order to restore the period that was missed, since you simply could not have any idea about the bankruptcy of the organization that owes finances.

So, concluding an agreement on an interest-free loan to a legal entity from an individual involves some subtleties , and therefore requires increased attention from the participants in the transaction when drawing up the document. It is necessary to take and write receipts for the transfer or receipt of funds yourself. Also, be sure to include in the loan agreement the terms for the repayment period.

Personal income tax on a loan to an individual with payment of interest

• staying in the Russian Federation for less than 183 calendar days within 12 consecutive months;
• whose period of stay on the territory of the Russian Federation is interrupted by periods of his departure outside the territory of the Russian Federation for short-term (less than 6 months) treatment, training, performance of labor or other duties related to the performance of work (provision of services) in offshore hydrocarbon fields;
• who are residents of a foreign state.

• staying in the Russian Federation for at least 183 calendar days within 12 consecutive months;
• whose period of stay on the territory of the Russian Federation is not interrupted by periods of his departure outside the territory of the Russian Federation for short-term (less than 6 months) treatment, training, performance of labor or other duties related to the performance of work (provision of services) in offshore hydrocarbon fields;
• Russian military personnel serving abroad;
• employees of state authorities and local governments sent to work outside the Russian Federation.

At what percentage to give a loan to a legal entity 2020

In the course of checking the compliance of prices for controlled transactions with the level of market prices, the lender may be charged additional income tax if he has not independently adjusted the income for tax purposes based on the market rate. Discussion of the specific terms of the transaction must take place through negotiations before the conclusion of the contract. Any legal entity can issue loans.

There are specialized organizations on the market that are ready to provide financial support to various types of businesses.

It is also not uncommon for loans to be received from other companies that are part of a group of companies or from partners with whom there are long-standing relationships.

The list of legal entities that can act as creditors is not limited at the legislative level. All terms of the agreement between the parties are determined by the loan agreement. This is pp. 7, paragraph 4 art. 105.14 of the Tax Code In fact, this change is interpreted somewhat more broadly.

In this situation, they say that the risk of the lender is also removed.

But the Tax Code interprets this situation differently - I didn’t receive it because I didn’t want to, but I could have made money from it.

Loan from an individual to a legal entity personal income tax interest 2020

this is not the same situation at all. Question: According to the position of the Federal Tax Service of Russia, the income of an individual received as a result of providing loans to individuals is subject to personal income tax at a rate of 13% based on the submitted tax return and is classified for personal income tax purposes as income in the form of interest on loans. Subparagraph 1 p. 1 tbsp. 208 of the Tax Code of the Russian Federation establishes a tax on income received by a tax resident of the Russian Federation in the form of interest from a Russian organization or from Russian individual entrepreneurs.

How to arrange payment of interest under a loan agreement to an individual personal income tax secured by real estate? If a legal entity or individual entrepreneur provides an employee with a cash loan intended for:

Loan to an organization from an individual - material benefit

Personal income tax can be calculated using the formula: Personal income tax = financial benefit x tax percentage. If debt is forgiven, then this amount is fully included in the income of an individual and is taxed at 13%. Also, material benefits in some cases are not taxed, as indicated in Art. 212 of the Tax Code of the Russian Federation. This always applies when issuing a loan to a legal entity. Material benefits from a loan to an individual are not subject to personal income tax in the following cases:

• for housing construction;
• for the purchase of a residential property or part of it (house, apartment, room, etc.);
• for the full or partial acquisition of land for the construction of a residential property;
• for the purchase of a plot with a residential building;
• for refinancing loans that were issued for the construction or purchase of a residential property, land for building a house, land with a house, shares in construction, etc.

Is it necessary to show interest paid on a personal loan?

Important! This position of the Federal Tax Service contradicts their own explanations on the payment of “rolling” sick leave, which should be reflected in a similar way. According to the letter from the Federal Tax Service, “carrying over” sick leave is shown in the report on actual payment, i.e. if compensation was accrued in March and paid in April, these amounts will not fall into any section 6 of personal income tax for the 1st quarter.

According to explanatory letters from the Federal Tax Service, the day money is credited to a person’s bank card is the date the income is actually received. On the same day, personal tax is withheld. The deadline for transferring the fee is the next business day after payment of the remuneration.

08 Feb 2020 juristsib 2561

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Features of this loan

One of the main features of this type of provision of borrowed funds is that the agreement can be interest-bearing or interest-free. However, the provision of such loans is strictly regulated by the tax service.

Thus, interest-free loans have more rules that must be followed when applying:

According to these provisions, the loan agreement should be drawn up. Only in this case can it be used as a legal document.

Loan agreement between an individual and a legal entity

The main condition for carrying out such a transaction is drawing up a loan agreement. A well-drafted document guarantees the strength of the transaction in the legal field.

In order not to make mistakes, many use the services of experienced lawyers to analyze and draw up the contract.

Indeed, in this case, unforeseen situations and ambiguous provisions in the agreement cannot arise. At the very beginning, you should title the document, indicate the city of the transaction and the date.

The following information is entered:

1. Information about the lender - full name.
2. Name of the borrower company and full name, position of the representative.

After this, the contract is divided into several sections. In each of them, subparagraphs will meet specific goals:

• determination of the subject of the transaction;
• distribution of rights and obligations for each party to the agreement;
• loan conditions;
• details of the parties, their signatures and seals.

It is worth noting that when concluding an agreement with a legal entity, information about the company and its representative will be indicated as details.

In most cases, this is the director. The agreement itself is concluded in two copies - for each of the parties to the agreement.

What needs to be included in the contract

In order for the loan agreement to be the most effective and legal, you should include as much data as possible.

This includes information about the borrower and lender, as well as the terms of the loan, and the specifics of termination of the contract.

List of documents

To conclude an agreement, you must stock up on a certain set of documents. Although it is less than in the case of bank lending, it should still be present.

Among the main documents, the lender provides an identity document. By doing this, he confirms his participation in the transaction and enters his data into the contract.

As for the borrower, more requirements are put forward to him:

1. Document on registration of a legal entity.
2. TIN.
3. Passport of the representative (director) of the company.
4. Accounting statements - for the lender to check the financial condition of the enterprise.

Loan type

In terms of lending, you can choose different types of loans - with or without interest rates. Each case will have its own specific documentation requirements.

Interest-free

This type of loan can be issued, for example, by the founder of an enterprise. The loan application procedure itself is no different.

But it is worth remembering that in this case it is not always cost-effective to draw up a paper contract.

But there are restrictions on the provision of a loan by an individual to a legal entity - when borrowing an amount greater than 10 minimum wages, a written agreement must be drawn up.

Percentage

With an interest-bearing loan, the procedure for drawing up an agreement will be standard. However, there are no restrictions on interest rates.

Tax consequences for the parties

It is worth noting that in the legislation of the Russian Federation there is no clear delineation of the concept of a loan operation. This can be either the provision of a financial service or an investment in production.

In the case of a gratuitous loan, they are guided by Articles 250 and 40 of the Tax Code of the Russian Federation. They say that if such an operation takes place, then the company receives non-operating income.

Then it should be taxed at the market price or the Central Bank refinancing rate. If an investment operation occurs, then according to the same code, Article 39, such funds are not subject to taxation.

Sample loan agreement for a legal entity from an individual

It is necessary to approach drawing up a contract very responsibly. All parameters of the transaction will depend on its content; it can also be required by the tax authorities and have a significant impact on the calculation of taxes for both the borrower and the lender.

You can download a standard sample loan agreement from an individual to a legal entity here.

There are many types of loan agreements. They may provide for the payment of interest for the use of money or not, be secured by a pledge or guarantee or provided without security, be of a targeted or non-targeted nature, etc.

It is necessary to take into account all these points in advance when drawing up the contract, otherwise it will not always be possible to make changes later.

Sample contracts

A legal entity should approach the execution of a loan agreement for an individual with full responsibility. Its content will directly affect all terms of the transaction. In addition, it may be required by tax authorities. It can significantly affect the calculation of taxes, both for the lender and for the borrower.

Agreements come in a wide variety of forms. They may provide for the payment of interest for the use of money or not, they may be secured by a guarantee, collateral or not, have a targeted or non-targeted nature.

All these points must be taken into account in advance, when drawing up a written agreement, since it is not always possible to make changes later.

A sample loan agreement from an individual to a legal entity is presented below.

Interest-free type

For a long time, interest-free loans were the main way to receive funds from the founders to replenish working capital and other business expenses of the organization.

If necessary, the business owner received the funds back and no additional expenses were incurred by either party to the transaction.

But the opinion of some tax inspectorates changed, and some organizations began to receive additional tax charges on profits that they allegedly received from saving on interest.

The courts, on the contrary, sided with the borrower and declared such acts invalid. It is better to clarify this point in advance with the service organization of the Federal Tax Service, because not everyone wants to sue.

Important! An interest-free loan agreement must contain a direct indication of the absence of interest.

If there is no data on interest, the borrower must pay it based on the key rate of the Central Bank of the Russian Federation on a monthly basis.

With an interest-free loan, the lender does not make a profit from the accrued interest. Also, this type of transaction allows you to repay the debt ahead of schedule at any time, regardless of the period specified in the agreement.

Otherwise, an interest-free loan agreement may have all the same conditions, including penalties, as other similar agreements. Interest-free loan agreements can be found here.

Percentage type

If the agreement provides for the payment of remuneration to the lender for the use of borrowed funds, then it is called an interest agreement.

The interest rate is agreed upon by the parties through negotiations and can be represented as interest per day, week, month, quarter or year of use of funds.

It is also possible to indicate a specific amount that the borrower pays to the lender for part or all of the loan term.

This version of the agreement is most often used when a business raises money from employees or simply private investors.

The text of the agreement must specify the rate or specific amount of remuneration, the procedure for calculating and paying interest.

If the loan agreement does not indicate any rates, then interest will be calculated at the key rate of the Central Bank and must be paid to the lender monthly, regardless of the term of repayment of the principal debt.

Interest rate loan agreement between a legal entity and an individual can be found at this link.

Targeted loan

In most cases, loan agreements do not stipulate conditions on where the legal entity will spend them.

But there are situations, for example, if there are a large number of owners, when the lender wants to give a loan only for certain purposes and gain control over their use. In this case, enters into a targeted loan agreement ().

At the request of the lender, the organization will have to provide him with documents that confirm that the funds were sent in accordance with the terms of the loan agreement and nothing else.

If the condition of intended use is violated by the borrower, the lender may demand immediate repayment of the entire amount of the debt and the actual accrued interest.

When secured with collateral

Sometimes the lender wants to receive guarantees of repayment of funds, especially if we are talking about a fairly large loan amount. A surety or pledge is usually accepted as security.

Many lenders consider the second option much more preferable, especially if the recipient of the funds has liquid property.

The loan agreement must indicate that it is secured by collateral of the borrower’s property and specify how specifically. Additionally, you will need to conclude a collateral agreement.

A loan agreement with property pledged can be found here, and a sample collateral agreement can be found at this link.

Personal income tax on loans

If the lender receives from the borrower an amount equal to the original amount (specified in the loan agreement), then no economic benefit (income) arises, and accordingly, there are no grounds for taxation. As a result, personal income tax is not charged, since there is actually no income. However, if an organization provides an interest-free loan, then it is necessary to take into account that the recipient of the loan is already saving on the interest that citizens usually pay for loans. Therefore, according to tax legislation, this savings is direct income (material benefit), and personal income tax must also be paid on it.

Let's consider cases when a loan is subject to personal income tax. This happens if the company allows you to manage borrowed funds on terms that are better than in banks. This parameter is determined by the formula “2/3 of the refinancing rate” and is called the marginal rate. If the loan rate is lower than 2/3 of the refinancing rate of the Central Bank of the Russian Federation, then you are required to pay personal income tax on such material benefit. This, of course, also applies to interest-free loans from organizations.

Return period

The parties have the right to independently set the loan repayment period, as well as enter into an open-ended agreement.

In the latter case, the borrower will be obliged to repay the debt amount within 30 days upon receipt of a written request from the lender.

In practice, loan agreements lasting more than 3 years for fairly small amounts raise suspicions among the tax inspectorate and can lead to the loan being equated to gratuitous assistance and additional income tax charges.

This can be avoided by providing in the main agreement a condition for a possible extension, or even better, by re-executing the loan agreement.

What are the risks of the parties?

The lender's main risk is the possible non-repayment of funds. Of course, if we are talking about a legal entity where the only founder and director is one person, then non-repayment can only happen because of a “failed” business and the borrower himself will be to blame.

But in other cases, it is better to minimize this risk by obtaining security in the form of collateral or surety.

For the borrower, there is a risk of losing the property pledged under the agreement or as a result of judicial foreclosure. Therefore, the borrowing company must make careful calculations before borrowing money.

Both parties to the transaction may also face tax risks, which will depend on the nature of the loan and other parameters of the agreement.