Reports indicate that we still borrow from loved ones. This is because we usually trust our friends and family members. For security reasons, we should always sign a contract.
Private loans or online loans? Our preferences
What do we need funds for? As research shows, we usually borrow for renovation. Yes declares 37 percent. respondents. Another need mentioned is the purchase of a car for which it lends 27 percent. respondents. We sometimes apply for funds in connection with school layettes or events such as holidays or weddings.
As you can see, this is about current needs.
The good news is that we are lending less and less to repay existing obligations. 11 percent do so of us – results from a study conducted by Wong, i.e. as much as 3 points percent. less than a year ago. This means that our knowledge about loans is increasing.
Act on tax on civil law transactions
Unfortunately, not all of us know where to look for information on taxes associated with loans. The tax system in Poland can be quite complicated for us. Certainly, we want to borrow securely, which is why we are looking for this type of data. The provisions concerning us are included in the Act on the tax on civil law transactions. It is precisely indicated who is subject to the obligation to pay this amount.
What should interest anyone who is a customer of a non-bank institution or who lends privately? Certainly, according to the aforementioned act, the borrower is not taxed when using the services of a professional loan company. The fees are then paid by the service provider. This is more complicated for private loans.
What is the PCC tax and when does it apply to us?
The tax on civil law transactions covers various financial transactions. We can distinguish here among other articles of association, mortgage, sales as well as loan agreements. In the latter case, the tax applies to lenders that provide services occasionally who do not carry out financial activities.
Therefore, if we are going to grant someone a private loan, we should carefully check whether it will be profitable for us. Borrowers are often afraid of non-interest costs, while loan providers should avoid unpleasant surprises. The overdue tax is undoubtedly theirs.
If we grant a loan, we can pay tax via the internet. You will need to download the PCC-3 form, print it and complete it. After providing the required information, our print must be sent to the Tax Office competent for our place of residence. How much time do we have for this? Exactly 14 days after the tax liability arose.
We should remember this because not only the repayment of the loan requires timeliness, but also the payment of additional fees by private persons who grant it.
Private loan – when will I not pay tax?
When we need external financing, we may wonder if a private loan will be better than an online loan. Usually, a lot depends on our individual situation. Regardless of the relationship, we have with the lender, it is worth documenting this transaction.
You should remember the most important aspects of the loan agreement and carefully check all the details.
It is worth mentioning that the so-called loans from extended family or friends may be exempt from tax.
It will be when:
- A person’s debt is less than 5000 USD. Importantly, all our debts with this lender over a period of 3 calendar years are taken into account.
- If we borrow from several private service providers and the arrears will not exceed USD 25,000.
Tax exemption for a family loan
When choosing a private loan, we should know the concept of a tax group. The first group includes:
- Daughter-in-law and son-in-law
- Stepmothers and stepfathers
It is very important that the amount does not exceed USD 9,637 and the loan period is a maximum of 5 years. Not all of us are happy with this amount and know that they will not repay the loan on time. At a time when this type of amount is not a solution to our problems, you should think about other options.
With a non-bank loan, you don’t worry about tax
If we do not declare a taxable private loan in the Tax Office and we do not settle the amounts due, we may face legal sanctions. Sometimes other options are worth considering. We are talking about online loans, which release customers from the obligation to pay tax on such a service.
It will be so if we decide to borrow from a professional non-bank institution. Yes, other fees cannot be omitted. Only the free first payday fee is exempt from commission and interest. However, we can find offers that will suit our financial capabilities. When we need a larger amount, we can take out an installment loan with a longer loan period.