Field help:
Other debt interests
Enter here the expenses for other debt interests.
Debt interest can only be deducted in full as business expenses as long as you do not withdraw more from your company than the profit and the deposits transferred to the company.
However, if the withdrawals are higher than the sum of profit and deposits (so-called over withdrawals), the debt interest attributable to them cannot be deducted without further ado:
- If the remaining debt interest is less than 2.050 Euro, you can deduct the debt interest in full for reasons of simplification without having to examine the question of the transfer.
- If the remaining debt interest is more than 2.050 Euro, you must divide the debt interest into a deductible and a non-deductible amount. The non-deductible amount is simply determined with 6% of the withdrawal and added to the profit. If withdrawals have already taken place in previous fiscal years, they are included in the assessment basis. If the profit and deposits have not been withdrawn in full in previous years, these withdrawals reduce the basis of assessment. However, the amount added to the profit is limited to a maximum amount, i.e. to the total debt interest incurred in the financial year minus the debt interest attributable to fixed assets and reduced by 2.050 Euro.
