The loan is a civil law transaction for which a tax of 2% must be paid. These rules also apply when borrowing money from family or friends. Please note that with higher amounts we should take care of all formalities. Otherwise, we will face fines. When do we have to pay tax on a loan from a loved one?
A loan from your immediate family
The amount of tax-exempt amount depends on your belonging to a tax group. The highest threshold is in the case of the first tax group, which includes: ascendants (parents, grandparents), descendants (children, grandchildren), spouse, siblings, parents-in-law and son-in-law. We can borrow up to PLN 9,637 without paying tax from people close to us.
It is also possible to borrow a larger amount, but in this situation we must meet two conditions. The first is to submit the appropriate declaration to the tax office. In addition, borrowed funds should be sent by bank transfer so that they can be proven via a bank statement. If we take care of these formalities, a higher donation will also be exempt from a 2% tax.
A loan from an extended family or friends
For donations from tax groups II and III, tax over certain amounts cannot be avoided. For the second group, to which we include a larger family, the tax-exempt amount is PLN 7,276. Group III is our friends, acquaintances and strangers. Here the threshold is PLN 4902. If the loan exceeds the aforementioned thresholds, you must pay a 2% tax, otherwise you will be fined 10 times!
There is one more thing to keep in mind. The above rules apply not only to one-off loans. If we borrowed money from one person several times, all amounts count towards one donation. If, within five years, the sum of donations exceeds the fee-free thresholds described above, we are also obliged to pay tax.