Conditions for Granting Loans from Money Lender Singapore
What is the tax treatment applied for granting loans from money lender Singapore? For example, a company wants to provide a loan to an employee to solve health problems. The loan is granted without interest for 10 months, with monthly repayment. Being a loan granted without interest, can this non-payment of interest be included as an advantage and taxed by the state? What is the legal basis, and what does the Singapore law on licensed moneylender say?
What Singapore Law on Licensed Moneylender Says About Loans The Singapore law on licensed moneylender does not prohibit the granting of loans by a company in favor of employees. However, it is recommended that the company's statute regulate this. At the same time, granting such loans must occasionally be part of the employee loyalty policy. It is also necessary that the loan agreement provides an interest rate because the lack of interest is considered a subsidy. Therefore, such an operation cannot be classified as a crediting activity performed professionally having only an occasional, limited character.