Interest Rate On Loans Between Related Parties For 2022

The Decision on the publication of the interest rate on loans between related parties, which determines the amount of the interest rate on loans between related companies referred to in Article 14 of the Income Tax Act for 2022 was published in December.

According to the said Decision, the interest rate is set at 2.68% and in tax terms it is considered as:

• the minimum interest rate that a company should charge when lending to related parties who are non-residents and
• the highest interest rate charged to the company on the received loan by related parties who are non-residents.

In the first case, if interest was charged at a rate of less than 2.68% or an interest-free loan was approved, then the difference between calculated and prescribed interest rates should increase corporate income tax base when compiling the Income Tax form.