In 2024, if your company holds a current account credit (C/C) and pays interest on it, it is important to know what percentage is tax-deductible. This year, the maximum rate is 8.02%, calculated by adding 2.50% to the “MFI” interest rate applicable to loans concluded in November of the previous year, which was 5.52% for November 2023.
Interest paid by your company on a C/C credit is normally deductible, but it must not exceed this maximum rate to be considered as such. If the interest exceeds this percentage, it risks being reclassified as dividends, except in the case of interest paid to companies where they are then considered non-deductible expenses.
It is important to note that this rate applies to interest related to the calendar year 2024, even for companies whose fiscal year spans two years (for example, from 2023 to 2024).
In conclusion, compared to the previous year, the maximum rate has increased favorably by 2.32 percentage points, rising from 5.70% to 8.02%, and serves as the new threshold to remain tax-deductible.
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