Hi Everyone,
I am a shareholder/Director of my own Co. and I am planning to get a loan from my Co. before paying it back in about two (2) years time.
To avoid any tax implications, I am looking to make a loan agreement with my own Co., pay interest on the loan amount based on on the ATO rate and by paying the loan balance within seven (7) years. Is this a correct assumption?
Regards
Yes - you need a Div 7A complying loan agreement.
They can be bought online - do not try to write it yourself.
To calculate interest, use
https://www.ato.gov.au/calculators-and-tools/division-7a-calculator-and-decision-tool
Yes - you need a Div 7A complying loan agreement.
They can be bought online - do not try to write it yourself.
To calculate interest, use
https://www.ato.gov.au/calculators-and-tools/division-7a-calculator-and-decision-tool
Thanks a lot for the answer
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