Interest on the money you lent your company — Furnished flat-share in Melun — SCI à l’IS · ID 04SCI 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: €39,038.43 × 4.00% = €1,561.54; your tax 31.40% × €1,561.54 = €490.32; lent back €1,561.54 − €490.32 = €1,071.21. Closing = €39,038.43 + €1,071.21 + €0.00 = €40,109.64.

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 €1,561.54 and gets €1,071.21 straight back, so €1,071.21 − €1,561.54 = −€490.32 leaves its account (your tax).

Year 1: no legal cap is set, so the company deducts the full €1,561.54 from its taxable profit.

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 = €1,044.04 + €41.76 + €5,064.33 = €6,150.13. Payment after the purchase = max(−€6,150.13, €0) = €0.00.

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 €18,391.70; the company owes you €40,109.64. Repaid first, tax-free: max(min(€18,391.70, €40,109.64), €0) = €18,391.70. Taxable payout = max(€18,391.70 − €40,109.64, €0) = €0.00. The money at sale leaves €21,717.94 of the compte courant unrepaid (min(€40,109.64, €40,109.64 − €18,391.70)). The company cannot pay it, so that part stays unpaid (you cover any amount below zero).

Lending the company €39,038 at 4.0% leaves you −€490 worse off at sale (Year 1).i

Does lending to your company at 4.0% pay off? (with vs. without), Year 1