Most loans that were granted by a person or institution other than an enterprise as part of the provision of financial services must be reported to the tax office. The obligation to notify results from the need to collect tax on civil law transactions from the loan. The tax rate is 2% of the loan value. The borrower is obliged to submit the declaration on the PCC-3 form to the relevant tax office. You have 14 days to do this from the time the loan agreement is concluded. At the same time, tax should be paid. In addition, we must attach proof of obtaining the funds to the form – confirmation of the transfer or postal order indicating that the borrowed funds have been on our account. Fortunately, there are several exemptions to the loan application and payment.
A loan granted to a family
Tax law considers the spouse, descendants, ascendants, stepchildren, son-in-law, daughter-in-law, siblings, stepfather, stepmother and mother-in-law to be the immediate family, i.e. the so-called first tax group. Descendants are natural descendants, adopted (adopted) children, children recognized as their own, children born out of wedlock and the same persons constituting the offspring of the abovementioned (grandchildren, great-grandchildren, children adopted by the grandson, etc.). Descendants are parents, grandparents, great grandparents, etc. The loan granted to the immediate family does not have to be reported until the amount not subject to tax has been exceeded. Of the loans granted to the first tax group, only loans amounting to more than $ 9,637. are subject to notification to the tax office. The tax on civil law transactions will be collected only on the amount exceeding $ 9,637.
Loans granted to others
Loans granted to other persons who are not members of the immediate family are not subject to notification to the tax office (and hence tax) until they exceed the total amount of $ 5,000. However, when borrowing money from several people or institutions for an amount greater than $ 25,000 over the next 3 years (starting from January 1, 2015), we must notify the tax office and pay tax on funds exceeding the indicated amounts.
Exemptions from notification
Apart from the cases mentioned above, the loan granted by a shareholder to his capital company is not subject to filing with the tax office. We also do not have to report loans from cash registers or company funds, trade union funds, employee loan and credit unions, cooperative savings and credit unions, colleague’s savings and loan unions operating in the army and from the company social benefit fund. Loans granted by foreign entrepreneurs (who have no registered office or management board in Poland) who conduct business in the field of granting loans and borrowings are also not subject to tax liability.
Consequences of not submitting a loan
Persons who, despite their obligation to submit a loan to the tax office, have not fulfilled it may face high financial consequences. Reporting activities after 14 days is associated with the loss of tax exemption, and therefore will result in a 2% charge on the entire loan amount. If during the inspection the granting of a loan that has not been reported comes to light, it is subject to ten times more taxation – the tax on civil law transactions will be 20% instead of 2%. This applies to all loans that are subject to notification, whether granted by companies or private individuals. It is also irrelevant whether the obligation arose as a result of exceeding the exempted loan amount or has existed since the loan was granted.
Loan agreement when reporting to the tax office?
Pursuant to the Act, the tax obligation, i.e. payment of the tax and submitting the loan to the Tax Office is the responsibility of the borrower. This means that the person or institution that transferred the money will not bear any consequences if the loan is not reported to the office and no tax is paid. Of course, the loan agreement may indicate that the other party will be required to pay the tax and report, or to split this obligation in half – so that both the lender and the borrower pay half the tax.
The tax on civil law transactions collected in the above cases concerns only the granting of the loan. It should not be forgotten that some activities connected with granting the loan are also subject to separate taxation. An example would be the establishment of a mortgage. If we decide to take out a loan with such security, we are obliged to pay another tax on civil law transactions in the amount of 0.1% of the security amount or $ 19. Tax filing and payment should also be made by the borrower.