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| What is Beneficial Loan?
We're talking about a Beneficial Loan when an employee received a loan from the employer which interest rate is not charged or it's significantly lower then the official rate. There's a difference between the two, the charged interest rate means that's it taxable while the one below the official rate is tax free.
The beneficial loan is given out for a short term and the borrower has to pay on a monthly basis. If you manage the get it then the interest rate is lower then the actual market price and you don't have to pay taxes on it. | | | | |
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