Good news, generally, interest is fiscally deductible.
\nWhen it is linked to your freelance activity, interest is deductible.<\/p>\n\n\n\n
That said, there are 2 exceptions:<\/p>\n\n\n\n
1 \/ excessive interest: for self-employed persons interest paid on advances by entrepreneurs, shareholders, their spouses or underage children is rejected (i) insofar as they exceed the market interest rate, or (ii) because the 1\/1 ratio is exceeded.<\/p>\n\n\n\n
The 1\/1 ratio means that the interest-bearing loan cannot exceed the sum of:
\n\u2022 taxable reserves at the start of the taxable period;
\n\u2022 paid-in capital at the end of the tax period.<\/p>\n\n\n\n
2 \/ Thin Cap: For companies, the credit on loans that exceed the debt or equity ratio of 1\/5 is rejected if this surplus exceeds the total amount of the loans by the following amounts times 5:<\/p>\n\n\n\n
\u2022 taxable reserves at the start of the taxable period;
\n\u2022 the paid-in capital at the end of this period.<\/p>\n\n\n\n
Finally, no VAT is charged on interest, so it does not count.<\/p>\n","protected":false},"featured_media":0,"template":"","deduction_tag":[548],"class_list":["post-15212","deduction","type-deduction","status-publish","hentry","deduction_tag-finance"],"acf":[],"yoast_head":"\n