Loan at a reduced rate of interest or interest-free loan: rates of interests 2023

As an employer, you can allocate a loan to your employees on favourable terms (interest-free or at a a reduced rate of interest ). This constitutes a taxable benefit calculated on the basis of a reference rate of interest. The reference rates of interest for income year 2023 have been published.

On the basis of these rates of interests, the value can be determined of the benefits allocated in 2023 (and 2024 pending the publication of the rates of interests 2024) in the form of various loans.

This is because the taxable benefit is equal to the difference between the reference rate of the year in which the loan was taken out and the interest rate charged to the employee, disregarding an interest rate reduction due to dependent children.

A. Mortgage loans with a fixed rate of interest

B. Non-mortgage loans with a fixed term

The taxable benefit for these loans can also be calculated based on the actual annual charge rate for the year concerned.

In that case, there is a new way of calculating this real annual charge rate for loan agreements concluded from 1 January 2023:

i = (1 + p)12 - 1

where i is the real annual rate and p is the monthly charge rate (expressed as a number e.g. 0.49 % becomes 0.0049 in the formula).

C. Non-mortgage loans without a specific term

Source: Royal Decree of 12 January 2024 amending the Royal Decree for the implementation of the 'Code des impôts sur les revenus 1992' with regard to the section of the benefits in kind in the event of allocating an interest-free loan or a loan at a reduced rate of interest, Belgian Official Gazette 25 January 2024.