Directors Loan Tax Rates

Jonny303

Hi,

Maybe someone can advise me.

If a company gives a directors loan for a property purchase, I understand that there needs to be a realistic interest rate set.

So the company gives the director a loan of €100,000 to pay off their mortgage at 3%.

How is the interest the company is earning taxed? Does it go straight into a profit and loss scenario or is it treated differently like a rental property. (Sorry I'm not sure of the terms).

Thanks

relax carry on

Jonny303 wrote: »

Hi,

Maybe someone can advise me.

If a company gives a directors loan for a property purchase, I understand that there needs to be a realistic interest rate set.

So the company gives the director a loan of €100,000 to pay off their mortgage at 3%.

How is the interest the company is earning taxed? Does it go straight into a profit and loss scenario or is it treated differently like a rental property. (Sorry I'm not sure of the terms).

Thanks

https://www.revenue.ie/en/employing-people/benefit-in-kind-for-employers/other-benefits/preferential-loans.aspx