This means that a loan obligation amounting to approx. EUR 100,000.00, which is non-interest bearing, would be down to interest for purposes of taxation with 5.5%, which is a Compounding means amounting to EUR 50,000.00 and thus a profit tax to be taken into account by EUR 50,000.00, no relevant yield strength faces the. Distributed over the term that once made yield-enhancing discounting will be countered successively through the annual accrued interest to be taken in the following years. In practice, tax advisors are well advised to book the interest expense on the company on its own account, as this interest expense – other no. 1a TTA is subject to the trade tax add-back than most other interest expenses – according to 8. It is therefore advisable to set up separate interest expense accounts.
Otherwise, there is the danger that these interest expenses accidentally subjected to the add-back. Especially when the loans within the framework of an operation splitting (the holding company granted the company a non-interest bearing loan) discounting is particularly dangerous. Main reason for this is the fact that while the liability in the operating business off to success increasing interest is, at the same time the demand in the possession corporate must not be devalued but and therefore with the par value is. Design Note: relevant clients should be recommended to avoid agreed that an interest rate agreement – which may also significantly below the market rate – the discount this. Caution should be however, that an interest rate close to zero if necessary as design abuse ( 42 AO) could be considered. A certain lower limit has not been established so far the Federal fiscal court.
Note to GmbH & co. KG: provided that a shareholder of a GmbH & co. KG will a loan granted by the latter, as this causes, that the liability for the balance of the hand – is different as a GmbH – without discounting the settlement amount (see BFH 24.01.2008, AZ: IV R 37/06). Main reason for this is that equal a loan receivable in the special assets of the partner to enable (the corresponding accounting principle). Ingo Heuel Attorney Tax consultant, lawyer for tax law (Bergisch Gladbach, Cologne area)