Interest on the money you lent your company — T2 in Melun — SCI à l’IS · ID 01SCI ISCompte Courant

Year 1 opens with the money you lent the company. Each year it pays you interest on the opening balance; you pay 31.4% personal tax on it and lend the rest straight back, and any cash you added when the company ran short joins it too. The closing balance is next year's opening — so next year's interest also runs on the money you lent back and on the payments after the purchase.

Year 1: €24,410.00 × 0.00% = €0.00; your tax 31.40% × €0.00 = €0.00; lent back €0.00 − €0.00 = €0.00. Closing = €24,410.00 + €0.00 + €579.57 = €24,989.57.

The interest is a cost for the company: it lowers its taxable profit (and so the company tax, once any losses carried forward from earlier years are used up — until then it makes the carried loss bigger; see Profit after allowed deductions). Of the interest it pays you, you lend 68.6% straight back: that cash never leaves the company's savings account, where it keeps earning the savings rate — or reducing what the company borrows from a lender, or what you must pay in — like any other cash there (counted once, Part 1 of that page). It also grows your compte courant (Part 1 above), which earns compte-courant interest from next year — a cost to the company, paid to you. Only your 31.4% tax leaves the company: that is the compte-courant cash effect on the savings account.

Year 1: the company pays €0.00 and gets €0.00 straight back, so €0.00 − €0.00 = €0.00 leaves its account (your tax).

Year 1: no compte courant interest this year, so there is nothing to deduct.

At a 0% company rate you add cash when the whole company would end the year below 0 — exactly enough to bring it back to 0. The full calculation is on the savings account page, Part 3. That cash is lent to the company like the rest: it joins this compte courant (Part 1) and earns its interest from next year.

Year 1: before your payment = €0.00 + €0.00 − €579.57 = −€579.57. Payment after the purchase = max(€579.57, €0) = €579.57.

If the company sells, it first repays you what it owes on your compte courant — the closing balance of that year, payments after the purchase included. Repaying a loan is not income, so it is tax-free; only the payout above it is taxed (the Cash you walk away with page).

If sold in year 1: money at sale €3,282.10; the company owes you €24,989.57. Repaid first, tax-free: max(min(€3,282.10, €24,989.57), €0) = €3,282.10. Taxable payout = max(€3,282.10 − €24,989.57, €0) = €0.00. The money at sale leaves €21,707.47 of the compte courant unrepaid (min(€24,989.57, €24,989.57 − €3,282.10)). The company cannot pay it, so that part stays unpaid (you cover any amount below zero).

Lending the company €24,410 at 0.0% leaves you +€0 better off at sale (Year 1).i

Does lending to your company at 0.0% pay off? (with vs. without), Year 1