Additional benefits granted by banks in settlements are taxable. They are not covered by the relief from the regulation of the Minister of Finance, “Rzeczpospolita” reported on Tuesday. And the tax can be quite a burden, as the amount of the levy can be up to 32%.
“Bad news for Swiss franc borrowers who reached an agreement with the bank regarding the settlement of the loan. They may pay tax on some of the amounts paid to them. And even 32 percent.“, the Rz daily reported on Tuesday.
Swiss franc borrowers must pay tax
“Banks grant additional benefits in settlements, calling them differently, e.g. remuneration for waiving further claims. Unfortunately, they are not covered by the cessation of tax collection from the regulation of the Minister of Finance,” Maciej Małanicz-Przybylski, an attorney at the KBiW law firm, told Rz.
“Rz” cited as an example the case of a borrower who received a significant amount “related to the obligation to waive further claims.” The tax office concluded that this was income from the so-called other sources, settled on a scale. “The benefit you received is not a canceled mortgage loan receivable or a benefit received in connection with the creation of income due to the application of a negative interest rate,” the tax office explained. In practice, this means the need to pay 12 or 32 percent. PIT.
The daily described another case: a Swiss franc borrower waived his claims for the loan, and the bank paid him the agreed amount and issued a PIT-11.
“If you are in the first threshold of the scale, you will pay 12% of your income, but if you are in the second threshold, it will be as much as 32%.” – said attorney Małanicz-Przybylski.
There are other solutions
The lawyer also emphasizes that Swiss franc borrowers should propose other solutions, e.g. “instead of an additional benefit for waiving claims, the bank could grant a refund amount calculated as the difference between the established loan balance and the funds overpaid by the borrower,” Rz reported.
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