Monetary benefit of a personal loan
June 9, 2011 | 20,00 EUR | answered by Michael Herrmann
Good day.
I am planning to take out an interest-free private loan amounting to 35,000 EUR. The lender is not related to me.
As far as I know, the interest advantage is to be considered as a gift.
With a credit term of max. 15 years, a monetary benefit of 19,854.45 EUR (35,000 x 5.5% x 10.314) arises from § 13 BewG (and annex 9).
In this scenario, I have a gift tax exemption of 20,000 EUR - so the monetary benefit would be completely covered and I do not have to pay gift tax.
Now my actual question: do the lender and borrower still have to report to the respective tax office according to § 30 ErbStG and if so, what documents are required?
Thank you.
Dear inquirer,
First of all, thank you very much for your request, which I am happy to answer based on the information you provided and in the context of your initial consultation. The response is based on the description of the situation. Missing or incorrect information about the actual circumstances can affect the legal outcome.
In general, every taxable acquisition is subject to reporting requirements (§ 30 para. 1 ErbStG), regardless of whether it is actually taxable. In the case of gifts, the donor is also required to report. If there is a reporting obligation, which is particularly common in private gifts, the acquisition must be reported to the competent tax office within three months of gaining knowledge or becoming obligated to do so, informally (§ 30 para. 1 ErbStG).
The report should include: name, address of the donor and the acquirer, date of death, place of death, date of gift, object and value of the acquisition, legal basis, relationship, previous acquisitions (§ 30 para. 4 ErbStG). It is certainly advisable to also submit the loan agreement.
I hope that with this information, I have provided you with a sufficient overview of the situation in the context of your consultation and this initial consultation, and remain
Yours sincerely,
Michael Herrmann
Graduate Financial Economist (FH)
Tax consultant
