Benefit in kind of interest-free and beneficial loans: reference interest rates published SD Worx Knowledge Centre Source Royal Decree of 6 February 2022 amending the Royal Decree on the Income Tax Code 92 with regard to benefits in kind in the event of the granting of an interest-free loan or a loan at a reduced interest rate, p. 11169.
The tax authorities have announced the reference interest rates that apply to interest-free and/or beneficial loans granted by the employer from 1 January 2021. The publication of these percentages allows the employer to review the benefits in kind for these loans on a retroactive basis. Taxable benefit Employers sometimes provide their staff with interest-free and/or beneficial loans. For tax purposes, this constitutes a taxable benefit in kind equal to the difference between: • •
the annual reference interest rate, set per type of loan; and the interest rate charged by the employer to the employee borrowing the funds (or company manager).
The reference interest rates change annually and vary depending on the type of loan. Through publication in the Belgian Official Journal, the tax authorities publish the percentages that apply to loans granted from 1 January 2021. More specifically, the following reference interest rates apply:
Mortgage loans:
Reference interest rate
- Repayment guaranteed by a mixed life insurance policy
1.34% (instead of 1.41%)
- Other loans
1.29% (instead of 1.36%)
SD Worx Social/Legal News March 2022
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