Organizations often need additional working capital for different purposes, such as purchasing goods, paying salaries or other needs, and the question immediately arises, How to Apply for PPP Loans ? Therefore, you should not neglect the help of the Nakase Wade California Business Lawyer & Corporate Lawyer in San Diego California

The first thing that comes to mind: take a loan from the bank. But, as a rule, it turns out that the interest for using a loan is high, and banks are not always ready to provide us with it, first they require an impressive package of documents for the entire history of the organization and filling out a variety of questionnaires, and then, after analyzing the whole thing, they often refuse ... As a result, a vicious circle turns out - the organization needs working capital to bring the business to a new level, the bank does not provide a loan to this organization, assuming that there will be problems with its return.

One of the options for a way out of this situation: take a loan from an entity that is not a financial institution (bank) - another legal entity, individual entrepreneur or individual. faces.

Or, what if an organization (a certain individual) has money that could be borrowed for a percentage of another organization or individual entrepreneur for temporary use? Let's consider such situations in more detail within the framework of this article.

But first, a little about the format of the contract. The standard details of the contract, which is concluded in writing, are:

• parties to the agreement: the lender and the borrower, where the lender is the one who lends money, and the borrower is the recipient of the money;
• terms and conditions of loan repayment;
• interest for using the loan, terms and procedure for their payment;
• responsibility of the parties;
• other conditions that the parties to the contract consider necessary to fix in the contract.

Interest loan agreement between two legal entities persons or between legal entities person and individual entrepreneur:

If your organization is a lender , and you plan to receive income in the form of interest, do not forget that the income received is subject to income tax (income tax). NDS is not appearing. The amount of the issued loan (the body of the loan) is not accepted for expenses and does not reduce your tax base, and therefore the tax payable. The loan is considered to be issued at the time of the actual transfer of funds.

Cashless payments.  When granting a loan by transferring funds from your current account in the bank to the borrower's account, the funds have been debited from your account, which means that this money has actually been transferred to you. But it so happens that the funds are debited, and they were received by the borrower not on the day of debiting from your current account, but later. In order to avoid disputes and misunderstandings with the borrower, this point should be clearly stated in the agreement, whether interest is charged from the day the funds are debited from your current account or from the day the money is received on the borrower's current account. According to the rules of good taste, the second option is usually fixed.

Issuance of a cash loan  contains some "pitfalls", such as:

• you cannot issue a loan in cash from the proceeds received from the sale of goods, the provision of services, the performance of work. For the purpose of issuing a loan, funds must go through the bank, i.e. cash proceeds are handed over to the bank, and then, again, withdrawn in the amount necessary to provide a loan, or, if the organization does not settle in cash and does not have a cash desk, then the funds can be withdrawn from the bank account using the checkbook;
• limitation on the amount of settlements under one agreement between legal entities persons or individual entrepreneurs and legal entities. face . This restriction applies not only to loan agreements, but in general, in any relationship in which payments are made in cash. Therefore, it is necessary to calculate in advance the amount of interest due under the agreement in order for the loan amount and interest to meet this limit. You should not create illusions about the conclusion of several agreements with one legal entity, where each agreement will fit into the limit, when checking the tax of such agreements, with the greatest degree of probability, they will be recognized as a single transaction;
• when specifying in the contract the purposes of obtaining a loan, such as: payment for goods, works, services - it is necessary to punch checks. If the purpose of issuing a loan is not specified in the agreement, then it is considered inappropriate and CCP is not applied;
• for withdrawing cash from a bank account, as well as for depositing cash, the bank charges a commission according to its tariffs, and in case of cash withdrawal, such a commission can be significant. Therefore, it will not be superfluous to ask the bank about the size of the commission before withdrawing funds from the current account.

When your organization acts as a borrower  and you are granted a loan by another legal entity. a person or individual entrepreneur, interest payable under the agreement is calculated, in your accounting, monthly, and is paid depending on the terms of the agreement - monthly or when the loan is returned. The amount of accrued interest is fully accepted in tax accounting (which means a decrease in the tax base in terms of these interests and, as a result, lower income tax / income tax). The very amount of the loan (the body of the loan) received at your disposal is not accepted as income (the tax base does not increase and the income tax / income tax does not).

As for obtaining a loan in cash, the nuances are similar to those discussed for the example of the lender.

Conclusion of a loan agreement between an individual and a legal entity, an individual and an individual entrepreneur:

In cases where  physical. the person is an employee of a legal entity. persons or individual entrepreneurs  who issued a loan, the lender, as a tax agent, withholds and transfers personal income tax to the budget.

If physical. a person who is not an employee of the lender must independently pay the tax and report on the received mat. benefit, and the lender, as a legal entity, provide information to the Federal Tax Service about the impossibility of withholding personal income tax from individuals. persons before February 1 of the year following the expired year, when the mat was received. benefit.

When focusing on the minimum values ​​of 2/3 of the current key rate of the Central Bank of the Russian Federation, when issuing a loan, it is necessary to check on a monthly basis whether the interest has gone beyond the limit and whether there is a mat. benefit from nat. faces at the end of the month.

Personal income tax is not paid if the loan agreement is targeted - for the purchase / construction of housing, which should be clearly spelled out in the agreement.

When issuing a loan in cash,  it is also necessary that the money be withdrawn from the current account in the bank. But there is no limit to the amount of the contract. The check for the returned money is not knocked out if the purpose is not specified in the contract - the purchase of goods, payment for services / works.

When providing a loan to individuals. person → legal entity person or individual entrepreneur  from the amount of accrued interest payable, nat. the person is obliged to pay personal income tax.

If it is physical. person employee jur. the person or individual entrepreneur who received a loan, the employer, as a tax agent, withholds personal income tax and transfers to the budget.

If physical. the person is not an employee , then he reports and pays the tax on his own, and the borrower (legal entity or individual entrepreneur) notifies the tax office before February 1 that it is impossible to withhold personal income tax. Checks are not knocked out if the purpose is not specified in the contract - the purchase of goods, payment for services / works.

Anything can happen in life, including situations  when a loan was not provided under a signed contract . The loan agreement was signed, and the loan was “changed”. In this case, if the loan is not transferred at all, within the framework of the concluded agreement, then the agreement does not enter into force, because the first condition for starting a relationship under a loan agreement is the actual transfer of money. And if the transfer of money nevertheless took place, but not from the date of the agreement, but later, then we begin to accrue interest from the date of the actual transfer of funds, unless otherwise specified in the terms of the agreement.

In conclusion, we will consider the situation when the lender (whether he is a legal entity or an individual entrepreneur or an individual) does not plan to make money on the funds provided, but is simply glad to help his neighbor, but he still plans to return the money provided.

Interest-free loans between an individual and a legal entity, an individual and an individual entrepreneur, two legal entities. persons or between legal entities person and individual entrepreneur.

In order for the loan to be interest-free, it is necessary that not only the agreement itself bears this name, but also in the terms of the agreement, it is clearly stated that interest is not charged. If the loan is interest-free, then taxes are not paid on it.