Taxes on low-rate loans: what borrowers need to know

Russian citizens are beginning to receive notifications regarding tax assessments for excessively low loan interest rates.

The letters are sent to borrowers who have taken out a mortgage or consumer loan at an interest rate below the Key Rate of the Central Bank.

Banks intend to calculate the difference between the market rate and the actual rate as additional income for the client. This amount will be subject to personal income tax (PIT).