When a loan is given to an employee there is deemed to be a tax benefit if the interest charged on the loan is lower than the LIBOR rate plus 5% for loans above a specified amount. The loan benefit needs to be setup under the tax parameters found under the 'Setup', then 'Tax Parameters' menu options and come through automatically onto an employees payslip thereafter. No benefit interest is being charged above the LIBOR rate plus 5%.
Different rates apply to loans in Zimbabwe currency for loan amounts exceeding a specified amount. These rates and amounts need to be checked when processing loans. Contact Belina to determine what loan amount and interest rate that should be entered to calculate the value of any loan benefit for that tax period.
For more information see: Loan Benefit
Was this article helpful?
That’s Great!
Thank you for your feedback
Sorry! We couldn't be helpful
Thank you for your feedback
Feedback sent
We appreciate your effort and will try to fix the article