In our article on the functioning of the associate current account, we explained that the sums contributed to a company through partner current accounts Peuvent être paid. In this article, discover the rules of operation and tax treatment of interest paid on partner current accounts.
We have dealt in our article on the functioning of the associate current account the fact that amounts donated to a business through partner current accounts can be remunerated. Learn more about operating rules and tax treatment of interest paid on partner current accounts.
As mentioned in our article on the functioning of the associate current account, amounts made available to a company through partner current accounts can give rise to a remuneration. See here the rules of operation and the tax treatment of interest paid on partner current accounts.
As discussed in our article on the functioning of the associate current account, funds made available to a company through partner current accounts Peuvent être paid. Here are the rules of operation and the tax treatment of interest paid for partner current accounts.
Payment of Current Accounts of Partners
The Associate Current Accounts may be remunerated by fixed interest, the rate of which is freely chosen by the parties.
Footnotes : the manager exposes himself to a mismanagement if he agrees to sign (and therefore to commit the company) an agreement for a Current Partner Account providing for a rate higher than what he could have obtained by others means of financing.
For tax purposes, a limit is imposed to allow the deduction of interest paid by the company for amounts deposited in the Associate's Current Account. This threshold is equivalent to the annual average of the average effective rates charged by the banks for variable-rate loans to companies with a duration of more than two years.
Tax on the remuneration of the partner's current account for a legal person
Here are the tax rules to be applied to the company and the legal entity partner.
Taxation for the legal person partner
The interest from the partner's current account are considered as taxable financial profits.
Tax for the company
The interest paid to the legal entity partner can be deducted from the tax result:
- if the share capital is fully paid up,
- and within the limit of the maximum rate defined each year, which corresponds to the annual average of the rates applied by banks for variable-rate loans to companies with a term of more than two years.
Footnotes : if the rate provided is higher than the maximum rate, the share of interest that exceeds the limit cannot be deducted from the tax result.
Remuneration of the associate current account for a natural person
Below are the tax rules applicable to the company and the individual partner.
Tax for the natural person partner
The interests related to remuneration of the partner current account are taxable according to the income tax scale.
Social security contributions at a rate of 15,5% are deducted at source and an installment of income tax, also deducted at source, at a rate of 24%, is made.
Footnotes : however, exceptions are provided for the income tax deposit if household income is less than 25 euros for a single person or 000 euros for a marriage subject to joint taxation.
Tax at company level
Interest paid to the natural person partner is deductible in the same way as indicated for legal person partners (see above).
