{"id":10603,"date":"2017-01-24T16:37:32","date_gmt":"2017-01-24T16:37:32","guid":{"rendered":"https:\/\/multicredit.ch\/wp\/deduction-fiscale-des-interets-du-credit-comment-ca-marche\/"},"modified":"2022-07-21T11:57:45","modified_gmt":"2022-07-21T11:57:45","slug":"tax-deduction-and-personal-loan-how-to-proceed","status":"publish","type":"post","link":"https:\/\/multicredit.ch\/en\/tax-deduction-and-personal-loan-how-to-proceed\/","title":{"rendered":"Tax deduction and personal loan: how to proceed?"},"content":{"rendered":"<h2><span class=\"ez-toc-section\" id=\"Explanation\"><\/span>Explanation<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>When signing a credit contract, the borrower commits himself to pay each month a fixed amount. This cost depends on the loan borrowed, the repayment duration, and interest rate. Yet, this amount can be split into two distinct parts:<\/p>\n<ul>\n<li>The loan reimbursement.<\/li>\n<li>The paid interest.<\/li>\n<\/ul>\n<p>If this split isn&#8217;t explicitly noted, it is nevertheless relevant. Indeed, the total amount of interest paid during the year <b>can be deduced from the taxable income<\/b>. In some case, this deduction can lead so significant savings.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Is_it_mandatory_to_declare_a_personal_loan\"><\/span>Is it mandatory to declare a personal loan?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Legally, taxpayers have no obligation do declare their borrowing. However, it is strongly advised to do so: this declaration has no drawback and saves money on taxes.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"How_to_proceed\"><\/span>How to proceed?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Usually, the money lender (bank or financial institution) sends <b>the interest certificate<\/b> every year in january. The deduction can made directly on the tax declaration, which should be sent with a copy of the interest certificate. If the lender forget to send this document, it is possible to ask for it normally without cost.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Other_deductions\"><\/span>Other deductions<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Legally, it is possible to deduce <b>every paid interest related to a debt<\/b>. This includes, among others, the following:<\/p>\n<ul>\n<li><b>Credit cards<\/b>: it is also good to know that credit card institutions usually don&#8217;t send a certificate. The customers have to ask for this document.<\/li>\n<li><b>Mortgage<\/b><\/li>\n<li><b>Vehicles purchased with a payment plan<\/b><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Leasings\"><\/span>Leasings<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Leasings are sometimes regarded -wrongly- as a type of loan. Is is important to know that leasing costs <b>are not taxe deductible<\/b>.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Amount_saved\"><\/span>Amount saved<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In Switzerland, taxes are subject to scales of contribution. The amount saved will depend on the customer&#8217;s situation (income) as well as the amount of paid interest. For example, a 20,000 Chf loan over 24 months can represent a total interest paid of 1,200 Chf fot the first year. On average, a 1,200 Chf income deduction can lead to a saving of roughly 120 Chf!.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"MultiCredit_supports_its_clients_in_their_daily_lives\"><\/span>MultiCredit supports its clients in their daily lives<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>When you call on\u00a0<a href=\"https:\/\/multicredit.ch\/en\/best-credit-rate-contact-us\/\">MultiCredit<\/a>, you are putting your trust in a specialist who has been operating in Switzerland since 1999. Our experts have extensive experience in financing.<\/p>\n<p>More than 90\u2019000 clients have placed their trust in us over the course of our 23-year history. We take care of your request free of charge and with speed between 24 and 48 hours. We always put people first, on all projects and with tailor-made solutions.<\/p>\n<p>Article written by Multicredit.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Each year, many borrowers forget to deduce interests on current loans from their tax declaration. How does this deduction work, and which document do you need? Explanation.<\/p>\n","protected":false},"author":4,"featured_media":10597,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":"","_links_to":"","_links_to_target":""},"categories":[258,264,263],"tags":[259,428,429,430,431],"class_list":["post-10603","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-credit-en","category-credit-card","category-news-en","tag-credit-en","tag-declaration-en","tag-deduction-en","tag-fiscale-en","tag-taxe-en"],"_links":{"self":[{"href":"https:\/\/multicredit.ch\/en\/wp-json\/wp\/v2\/posts\/10603","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/multicredit.ch\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/multicredit.ch\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/multicredit.ch\/en\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/multicredit.ch\/en\/wp-json\/wp\/v2\/comments?post=10603"}],"version-history":[{"count":4,"href":"https:\/\/multicredit.ch\/en\/wp-json\/wp\/v2\/posts\/10603\/revisions"}],"predecessor-version":[{"id":20734,"href":"https:\/\/multicredit.ch\/en\/wp-json\/wp\/v2\/posts\/10603\/revisions\/20734"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/multicredit.ch\/en\/wp-json\/wp\/v2\/media\/10597"}],"wp:attachment":[{"href":"https:\/\/multicredit.ch\/en\/wp-json\/wp\/v2\/media?parent=10603"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/multicredit.ch\/en\/wp-json\/wp\/v2\/categories?post=10603"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/multicredit.ch\/en\/wp-json\/wp\/v2\/tags?post=10603"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}