Hi
As a company director, I invested some amount into my company from my personal account and created an account in MYOB under Liability as Director's loan. Just wanted to know, can a company repay the loan to a company director and how? If yes, will this amount be tax-deductible as the director's income?
Thanks
Ravinder
Hi @Ravinder
Thanks for your patience
The repayment of a loan debt owed by a company to one of its Directors is not tax deductible for the company. On receipt, the repayment of the loan principal would not trigger a taxing event for the Director.
If interest was payable, the company would generally be entitled to a deduction if the money is used in its business. The interest paid to the Director would be included in their assessable income.
Hi @RAVINDER,
We will check this out wtih our technical team.
Hi @Ravinder
Thanks for your patience
The repayment of a loan debt owed by a company to one of its Directors is not tax deductible for the company. On receipt, the repayment of the loan principal would not trigger a taxing event for the Director.
If interest was payable, the company would generally be entitled to a deduction if the money is used in its business. The interest paid to the Director would be included in their assessable income.
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