Personal income tax calculator with material benefits for an interest-free loan in 2021

What you need to know when concluding a contract

The main legal document regulating the issuance and repayment of borrowed funds is a bilateral agreement, which is considered to be unilaterally binding, since the borrower has obligations, and the investor has rights.

There are 2 opinions regarding the date from which interest income should be calculated. Some believe that it should be counted from the time the money is received. And they operate with the provisions of Article 809 of the Civil Code of the Russian Federation, according to which the validity of the loan agreement begins from the moment when the money is actually transferred.

In this case, they refer to Article 191 of the Civil Code of the Russian Federation, which states that in civil legal relations, the deadlines begin the next day after the occurrence of the event. Guided by this principle, bank employees make accruals on the day following the transfer of money.

Another point is when to consider an agreement interest-free.

It will be considered as such if:

the contracting parties are individuals, and the cash loan does not exceed the amount of 5,000 rubles;
The loan was received not in the form of money, but in the form of impersonal objects.

Material benefit and its features

When concluding an interest-free loan agreement, it is worth remembering some nuances that require the borrower’s attention:

material benefits from an interest-free loan are not calculated if the parties to the agreement are individuals;
you don’t have to worry about tax deductions if an individual entrepreneur enters into an interest-free loan agreement with an ordinary citizen to provide funds, but they are not used in business activities;
in other cases, it is necessary to monitor the value of the Central Bank refinancing rate, in relation to which the calculation is made.

As can be seen from the above, it is very profitable to enter into interest-free loan agreements between companies. In this case, material benefit as such does not appear. Calculating material benefits, if necessary, is quite easy. When using an interest-free loan in 2021, take the simplest formula or a ready-made calculator that uses it.

UTII

The object of UTII taxation is imputed income (clause 1 of Article 346.29 of the Tax Code of the Russian Federation). Therefore, neither the money (property) issued to the borrower nor the interest received on the loan will affect the tax base for UTII.

Situation: is it necessary to charge income tax on the amount of interest on a loan issued if the organization is transferred to pay UTII?

Yes need.

Operations related to the provision of loans go beyond the scope of activities with which an organization can pay UTII (clause 2 of Article 346.26 of the Tax Code of the Russian Federation, letter of the Ministry of Finance of Russia dated May 14, 2008 No. 03-11-05/122). Accounting for income and expenses for such operations must be kept separately (Clause 7, Article 346.26 of the Tax Code of the Russian Federation). Include interest on the loan received from the borrower in non-operating income. The amount of this income must be taken into account when calculating income tax (clause 6 of Article 250 of the Tax Code of the Russian Federation).

When does an employee-borrower have income subject to personal income tax, and when not?

Loan transactions are regulated by Chapter 42 of the Civil Code of the Russian Federation.
The transfer of money into debt is formalized by a loan agreement in writing. By agreement of the parties, a document may be attached to the agreement that confirms the transfer of the loan (receipt, deed). The agreement comes into force from the moment the money is transferred (clause 1 of Article 807 of the Civil Code of the Russian Federation).

The loan agreement must define the amount, procedure and terms of repayment, amount and procedure for paying interest. Particular attention should be paid to the interest rate. If your contract is free of charge, be sure to include this condition. In the absence of this information, the contract is considered to be interest-bearing by default (Article 809 of the Civil Code of the Russian Federation).

If the agreement does not establish the amount of interest, it is determined based on the refinancing rate on the day of payment of the loan or part thereof (clause 1 of Article 809 of the Civil Code of the Russian Federation).

An employee can only be given a loan in rubles (Article 9 of Federal Law No. 173-FZ of December 10, 2003 “On Currency Regulation and Currency Control”).

If the loan repayment period has not been determined, the employee is obliged to repay it at the request of the organization within 30 days (clause 1 of Article 810 of the Civil Code of the Russian Federation). The loan can be repaid ahead of schedule if this does not contradict the terms of the agreement (clause 2 of Article 810 of the Civil Code of the Russian Federation).

The employee can return the loan to the cash desk or to the organization's current account. Also, by agreement of the parties, the amount of debt can be deducted from wages. The amount of deductions cannot exceed 20% of the salary amount (Article 138 of the Labor Code of the Russian Federation).

[ря61]
The head of the organization has the right to provide an employee with a loan for his personal needs. The loan can be interest-bearing or interest-free. The calculation of income tax and personal income tax depends on the terms of the loan agreement. What to pay attention to when issuing a loan, we will consider below.

In practice, an employee often asks the organization in which he works to help him temporarily with funds to purchase housing or other property. This raises the following questions for accounting:

Do companies have the right to issue loans to their employees?
What requirements are imposed on the organization (availability of profit, etc.) and on the employee (length of his work in the company, etc.)?
What is the maximum loan size and term?
Should such loans be subject to interest?
How is the issuance of loans to employees of an organization reflected in tax reporting?
What taxes are subject to?
What documents are required to obtain a loan?

1. Any commercial company has the right to issue loans to its employees

1) transactions with funds in cash: withdrawal from the account or crediting to the account of a legal entity of funds in cash in cases where this is not due to the nature of its economic activity;... 4) other transactions with movable property:... provision by legal entities, non-credit institutions, interest-free loans to individuals and (or) other legal entities, as well as receiving such a loan.”

Note: In our case, we issue a loan to our employee, and not to an outside individual. Therefore, we are not subject to this law.

The Civil Code of the Russian Federation and the Tax Code of the Russian Federation do not directly prohibit the issuance of interest-free loans by a commercial organization. However, the organization has a risk that the tax authorities, when analyzing interest-free loan agreements, will charge additional income tax based on the refinancing rate, justifying their position by the fact that a commercial organization was created for the purpose of making a profit and cannot but receive economic benefits from financial and economic activities .

The interest rate is reflected in the loan agreement. If the interest rate is not specified in the agreement, it is determined based on the Key Rate of the Central Bank of the Russian Federation established at the location of the legal entity on the day of repayment of the loan or part thereof (clause 1 of Article 809 of the Civil Code of the Russian Federation). At the moment it is 8.25 percent per annum.

From June 1, there are three ways to calculate loan interest. Previously, Article 807 of the Civil Code contained a clause only that the lender had rights to interest. How they should be counted could be specified by the parties in the contract. Now, according to the Civil Code norms, interest on a loan can be calculated:

at a fixed rate; Example: “For using the loan amount, the Borrower pays the Lender interest in the amount of 15 percent per annum of the loan amount”
at a floating rate; “For using the loan amount, the Borrower pays interest to the Lender. For the first six months of the loan, the interest rate is 15 percent per annum of the loan amount. For the second six months of the loan, the interest rate is 14 percent per annum of the loan amount. In case of early repayment of the loan amount, the interest rate is 18 percent per annum of the loan amount.”
in another way, for example, setting a remuneration in a fixed amount. “For using the loan amount, the Borrower pays the Lender a fee in the amount of 30,000 (thirty thousand) rubles.”

The parties must specify the method of calculation in the contract. If the method is not specified in the agreement, until June 1, calculate the interest at the bank interest rate at the location of the lender. From June 1, 2018, calculate interest at the key rate that was in effect in the corresponding month (clauses 1–3 of Article 809 of the Civil Code).

For an error in calculations, inspectors may impose additional income taxes, fines, penalties on both the lender and the borrower and hold the accountant administratively liable. For example, if the lender calculates interest at a lower rate, he will understate non-operating income. If the borrower takes into account interest in a larger amount, he will inflate the costs (clause 6 of Article 250, subclause 2 of clause 1 of Article 265 of the Tax Code).

About

Schemes for calculating loans with interest

According to the calculation mechanism, there are two types of interest:

simple;
complex.

Simple interest is used when the payment is made from the principal amount or from the balance of the amount for regular payments.

Compound interest is also relevant for the gradual repayment of debt. But this takes into account periods of delay. For example, the client did not have time to repay the payment for the current month. In this case, when using compound interest, next month interest will be charged not only on the remaining amount, but also on the amount of outstanding interest.

To put it simply, simple interest is a fixed rate throughout the entire term of the contract. Compound interest is a rate that gradually increases.

Material benefits arising from various transactions

When two people agree among themselves to provide an interest-free loan, simply put, they borrow money without requiring interest - even in this case, a material benefit arises. Thus, a number of factors need to be taken into account:

when the debt is repaid in parts, the material benefit is also calculated in parts, on the day of repayment;
the material benefit is calculated based on the refinancing rate and the term of the agreement;
if we are talking about a loan for the purchase of real estate, the state provides a tax deduction and material benefits are not considered.

If an interest-free loan agreement is concluded between legal entities, there is not a material benefit, but an economic one. The amounts included in the agreement are not taken into account for tax purposes as income received. Transferring funds in this manner is quite beneficial for companies and enterprises.

Formulas for calculation

There are not many formulas for calculating interest under a loan agreement. Conventionally, two main ones can be distinguished:

Formula based on simple interest. It is best adapted to loans where interest is accrued daily - that is, microloans in microfinance organizations. At the same time, the formula is fundamentally applicable in cases where a regular loan is issued - at an annual interest rate.

Formula based on compound interest. It is best suited for loans where interest is accrued over a long period - for example, a year. Thus, compound interest is the prerogative of banks that issue traditional loans - consumer, mortgage.

Disputes with MFOs

Despite the restrictions and prohibitions established by law, many microfinance organizations behave very smartly, if not cunningly. What happens in practice?

N. did not return the loan amount within the period stipulated by the agreement and did not pay interest. 10/01/2018 The microfinance organization sends by mail to N. a request for payment of the principal amount of the debt of 10,000 rubles. and interest, based on 750% per annum provided for in the agreement - 2,739.73 rubles, total 12,739.73 rubles.

N. ignores this requirement and does not pay the debt or interest. 01.11.2018 The microfinance organization submits to the magistrate an application for the issuance of a court order to collect the principal debt of 10,000 rubles. and interest (750% per annum) RUB 94,109.59.

The magistrate successfully collects the amount required by the MFO, but does not notify N. about the issuance of a court order, or N. does not receive a letter from the court with a court order.

At one point, 104,109.59 rubles are debited from N.’s salary card or bank account. for the execution of a court order.

But here is how the debt should be calculated correctly - options that you need to try to prove in court when challenging the amount of interest:

1) the period of validity of the microloan agreement from 08/01/2017 to 08/20/2017 (20 days), the principal debt is 10,000 rubles. interest under the agreement for 20 days (750% per annum) = 4,109.59 rubles. interest for the period from 08/21/2017 to 11/01/2018 (according to the key rate of the Central Bank of the Russian Federation) = 922.46 rubles. Total interest to be collected = RUB 5,032.05.

2) for agreements concluded before 01/01/2017, if the loan was not paid by the borrower, then the maximum amount of interest that an MFO can expect in court: 10,000 x 3 (three times the principal debt) = 30,000 rubles. (under contracts concluded from December 29, 2015 to December 31, 2016, 10,000 x 4 = 40,000 rubles (four times the principal debt).

3) under agreements concluded from 01/01/2017, if the loan was paid by the borrower and, for example, the interest was paid in full, and the amount of the principal debt remained 5,000 rubles, then the interest should be calculated as follows: 5,000 x 2 (twice the amount of interest ) = 10,000 rub.

Is it different from the amount collected through a court order?

Material benefits from an interest-free loan: calculator 2021

05/09/2018 4052 Many people are interested in the question - is there any material benefit from an interest-free loan?

It is quite reasonable for a person acting as a borrower to worry about such things. Having received a fairly favorable loan offer, it is not difficult to consider all the possibilities that will contribute to the benefit of the deal.

Before calculating what material benefits will come from this type of financing, you need to understand the concept itself. As a rule, lenders issue money at a certain percentage, that is, by taking a certain amount of money for a certain period, the borrower returns it, adding accrued interest for use.

Alternatively, the parties can agree on a gratuitous loan, that is, the amount is returned to the lender, no additional payments are required from the borrower. In this case, the agreement concluded by the parties must stipulate the benefits of both parties - no interest for the borrower and a refund in full for the lender.

Interest calculation formulas

To independently calculate the amount of interest payable by agreement, you can go in two ways:

use the formulas specified in the contract;
use the services of a service on the Internet, where specialized calculators are provided.

It is important to remember that payment using an online service is not always suitable for a variety of lenders. These services should be used in exceptional cases

Self-calculation is not a difficult undertaking. When the interest on the loan is not specified in the agreement, it is necessary to calculate it at the key rate of the Central Bank.

Interest accrual begins from the moment the borrowed funds are transferred in cash equivalent directly to the borrower. Additionally, receipt of funds by the borrower can be confirmed by a corresponding receipt.

The method of interest calculation depends directly on the agreement concluded. If the entire loan amount is intended to be repaid, then interest is charged directly on it. Accordingly, the borrower must pay the amount and interest on it. If the refund is made in parts, then the payment schedule is drawn up as follows:

The total interest on the loan is added to the amount of funds borrowed and divided by the number of payments. Payments will be identical, for the same amount.
A more complex calculation option implies that interest is calculated on the total amount of the agreement and divided by the number of payments. After the next payment, what has already been returned is subtracted from the remaining amount and the resulting result is subject to interest. The resulting amount is again divided by the number of payments. This technique is common in mortgage lending from banking structures.

There are many other options for calculating interest. Let's consider them further.

When material benefits do not arise

The legislation provides for a number of situations in which a material benefit does not arise for the borrower and, accordingly, is not taxed.

Such situations include:

conclusion of an agreement between individuals. Moreover, if individuals are individual entrepreneurs, tax still has to be paid;
conclusion of an agreement between legal entities;
if the interest accrued on the loan amount is a fine for failure to comply with the previously established debt repayment deadlines;
the loan funds were issued from the state budget.

In addition, there are situations in which a material benefit arises but is not taxed.

It could be:

obtaining funds to purchase an apartment, house, part of a residential building or build your own home;
obtaining funds to purchase land on which a residential building is already located;
issuance of funds by banking institutions for refinancing or repayment of previously issued loans.

Self-calculation and its advantages

The positive aspects of independently calculating interest on undertaken obligations are as follows:

if the lender charges “additional” interest not provided for in the agreement, the borrower sees the changed final amount;
you can challenge the creditor’s decisions before his representatives, or by seeking legal proceedings;
Having previously calculated the final amount, the borrower can choose a more favorable loan offer.

It is always worth focusing on the calculation method. It is easier to calculate the required amount when interest is calculated under a loan agreement using a simple formula

Large financial structures prefer the dependence of the repaid loan on floating factors. Calculation and recalculation of interest is always more profitable for the lender than fixed amounts. Some banks apply penalties for early loan repayment. In this case, the borrower will have to repay the loan, pay interest for its use, and even pay off the bank with fines.

By carefully reading the text of the concluded agreement, you can protect yourself from additional waste. If disputes arise, you can always turn to the courts. Again, do not be afraid to demand clarification of actions under various circumstances:

early repayment;
recalculation of interest;
delay in payment;
late payment of principal or interest;
sanctions;
possibilities and requirements.

All this must be explained by representatives of the lender’s side when requested by the borrower.

Calculation for refinancing

Refinancing is replacing the current loan with a new one. It is assumed that on more favorable terms. To understand that refinancing is profitable, you need to calculate - using one or another formula - what the total debt on the new loan will be in comparison with the total debt on the old one.

It happens that refinancing is not profitable in terms of interest, and is carried out only in order to close the old one with the help of a new, larger loan, and pay off the debt with the difference at first. This is a very unprofitable scheme - but many are forced to practice it.

It is possible that the money from the new loan will be partially used to repay the current one, and partially - to pay off both loans. This is also a financially unprofitable scheme, but in the short term it can help the borrower not go into arrears.

Thus, the procedure for calculations when refinancing depends on the purposes of its implementation - they can be very different and it is difficult to identify general patterns here.

Now let's look at how to calculate simple and compound interest on a loan - using the above formulas in practice.

Material benefits when receiving an interest-free loan

› › › allows you to earn money at the current interest rate.

Indicators are taken from regulatory documentation at the time of repayment of part of the loan or the entire amount.

This is the essence of the loans issued. However, today there are also so-called interest-free loans, for which no interest rate is charged. It is believed that in such a situation the person receives a material benefit. In accordance with current regulations, it is paid from it. It directly depends on the size of this characteristic.

You need to figure out how to calculate the material benefit of an interest-free loan. First you need to understand the terminological base.

The concept of “loan” refers to the transfer of money from one person to another with the condition of their return within a certain period. In this case, an interest rate is charged on the funds issued, which serves as a fee for the use of other people's funds. With an interest-free loan, such fees are not charged, which results in a material benefit.

We recommend reading: Check your compulsory insurance policy for authenticity

Other methods for calculating interest

Sometimes the lender does not indicate the interest accrued on the amount of the loan received, but specific values of the funds. A certain amount is added to the loan and the resulting result is determined as the main lump sum payment, or is divided into several payments over certain periods.

Private investment involves charging interest for the use of borrowed funds as follows:

the loan amount is multiplied by the accepted rate;
the term for which the loan is issued is multiplied by the number of days in a year;
the first product is divided by the second.

Sometimes a more complex formula is used to calculate the final amount required to be paid. She looks like this:

K * 1 + C / 100 * P, where:

K – the full amount of the loan issued; C – the interest rate under the agreement; P – periods involving the crediting of funds.

An interest-free loan is often used in the event of an agreement between legal entities. This is done so that the companies’ budget does not include income received from the transaction, which must be reported to the tax service. When one of the parties acting as lenders decides to receive a material benefit, then interest is calculated using simple calculation formulas.

Let's point out other features:

When the loan is valid for no more than a month, it is easier to indicate the rate for the month rather than apply its annual value. When using it, you should calculate the full amount required to be paid at the end of the term, and then divide by twelve (according to the number of months in the year).
Annual interest is most often used in banking structures when concluding agreements on the provision of borrowed funds. If we mean a standard year, the value of 365 days is applied; in a leap year it is increased by one.
In the event that the debt is not repaid at once, but in parts, it is imperative to inquire about the possibility of early repayment of the loan. An important point: if the final amount of debt is calculated using a simple formula, then one-time payments and periodic payments have a fixed value, therefore there is no difference to the creditor in terms of repayment. The main thing is no delays. When a complex formula is applied with recalculation of interest after each payment, the final amount may change. Therefore, the bank may suppress the possibility of early repayment for its own benefit.
When taking the refinancing rate as the basis for calculations, its value for a specific payment day is applied. The Central Bank may change the key rate.

How to calculate material benefits based on interest?

This is the most common type of financial benefit, so we will show the tax calculation for it.

The procedure for calculating material benefits from savings on interest is prescribed in paragraph 2 of Art. 212 of the Tax Code of the Russian Federation.

Loan in rubles

If the loan was received in rubles, then the material benefit is calculated as the excess of the amount of interest for the use of borrowed (credit) funds expressed in rubles, calculated on the basis of two-thirds of the current refinancing rate established by the Central Bank of the Russian Federation on the date of actual receipt of income, over the amount of interest calculated based on the terms of the contract.

The calculation of material benefits received in rubles can be expressed by the formula:

MV = SZ × (2/3 × StCB – StZ) / DG × DZ,

Where:

MB - material benefit;

SZ - loan amount;

StCB - refinancing rate of the Central Bank of the Russian Federation on the date of receipt of income;

See the rate for different periods here.

StZ - loan rate;

DG - number of days in a year: 365 or 366;

DZ - the number of days of using the loan, including interest-free.

An example of calculating personal income tax on material benefits from savings on interest on loans in rubles from ConsultantPlus. On June 3, 2021, the employer issued Kashin K.K. to the employee. (tax resident of the Russian Federation) loan in the amount of 500,000 rubles. at 4.5% per annum until December 1, 2021. The refinancing rate of the Bank of Russia during this period is 7.5% (conditionally). In this case, Kashin K.K. There is a material benefit when saving on interest, since 4.5% < 5% (2/3 x 7.5%). The employee transferred the entire loan amount and the interest accrued for the period of use of the loan to the organization’s account on November 30, 2021. The employer calculated personal income tax on material benefits as follows. You can view the entire example in K+. Trial access is free.

When calculating material benefits, the following must also be taken into account:

1. Material benefit is considered received on the last day of each month during the entire term of the loan agreement. That is, regardless of when interest is paid and whether it is payable according to the agreement, the material benefit is calculated monthly.

It should be taken into account that if the loan was repaid not on the last day of the month, but on some other day, then the material benefit is still calculated on the last day of the month (see letter of the Ministry of Finance dated January 14, 2016 No. 03-04-06/636 ).

2. If within a certain month the loan was partially repaid, then the material benefit is calculated in 2 steps: on the date of repayment of the loan and on the last day of the month.

Loan in foreign currency

If the loan was received in foreign currency, then the material benefit is calculated as the excess of the amount of interest for the use of borrowed (credit) funds expressed in foreign currency, calculated on the basis of 9% per annum, over the amount of interest calculated on the basis of the terms of the agreement.

The calculation of material benefits received in foreign currency can be expressed by the formula:

MV = SZ × (9% – StZ) / DG × DZ,

Where:

MB - material benefit;

SZ - loan amount;

StZ - loan rate;

DG - number of days in a year: 365 or 366;

DZ - the number of days of using the loan, including interest-free.

An example of calculating personal income tax on material benefits from savings on interest on loans in foreign currency from ConsultantPlus The Organization issued on May 13, 2021 to employee Semenov N.N. (tax resident of the Russian Federation) loan in the amount of 10,000 euros at 4% per annum until August 1, 2021. In this case, Semenov N.N. There is a material benefit when saving on interest, since 4% < 9%. The employee transferred the entire loan amount and accrued interest to the organization’s account on July 31, 2021. Let’s assume that the euro exchange rate as of 05/31/2020 was 63.26 rubles, as of 06/30/2020 - 67.50 rubles, and as of 07/31/2020 - 65 ,80 rub. The employer calculated personal income tax on material benefits as follows. Get a free trial of K+ to see the full example.

Personal income tax and insurance premiums

Regardless of what taxation system the organization that issued the loan uses, it may have responsibilities as a tax agent for personal income tax (clause 1 of Article 226 of the Tax Code of the Russian Federation). The fact is that when issuing a loan to an employee (or other citizen), the latter may receive a material benefit in the following cases:

providing him with an interest-free loan;

providing a loan with interest if the interest rate is lower than the refinancing rate. This is stated in subparagraph 1 of paragraph 1 of Article 212 of the Tax Code of the Russian Federation.

From the amount of material benefit received by the borrower (citizen) from saving on interest, personal income tax must be calculated (clause 1 of Article 210 of the Tax Code of the Russian Federation).

The amount of material benefit does not need to be accrued:

contributions for compulsory pension (social, medical) insurance (part 1 of article 1, part 1 of article 7 of the Law of July 24, 2009 No. 212-FZ);

contributions for accident insurance (clause 1 of article 20.1 of the Law of July 24, 1998 No. 125-FZ, letter of the Federal Insurance Service of Russia dated August 14, 2001 No. 02-10/05-5360).

Material benefit of personal income tax - 2020-2021

The Tax Code reflects the rates for taxation of material benefits with personal income tax in 2020-2021. Thus, if an individual receives a material benefit, the personal income tax rate may be as follows:

For residents of the Russian Federation, a rate of 35% applies to the excess of the interest savings received from the tax agent over the value of 2/3 of the Bank of Russia refinancing rate on the date of receipt of income on loans in rubles and 9% per annum on loans in foreign currency.
For residents of the Russian Federation, a rate of 13% is established for amounts of material benefits on goods purchased from related parties and transactions with securities.
For non-residents there is a flat rate of 30% for all reasons for the occurrence of material benefits.

Read more about rates in the article “What percentage is personal income tax.”