Simplification of disclosure duty
Anyone who since 2013 has taken out a new loan in connection with his or her own home, be it with his or her own private limited-liability company or with a relative, is under the obligation to notify the Tax and Customs Administration accordingly. The same disclosure duty applies in connection with loans that have subsequently undergone change. It has been proposed that this disclosure duty should be simplified with effect from the first of January 2016.
Compliance with the disclosure duty is achieved by submitting the designated form to the Tax and Customs Administration. You are required to file said form in anticipation of filing your income tax return for 2015 (but by 31 December 2016 at the very latest) if it was in 2015 that you took out a new loan with your own company or with a family member. We would point out in this context that changes to the loan conditions having been made in 2015 are required to be reported as early as by the first of February 2016. Notifying the tax authorities (in good time) is something that is easily forgotten, resulting in the interest payments on the mortgage loan no longer qualifying for tax relief. It is for this reason that the disclosure duty is likely to undergo simplification with effect from the time the income tax return for 2016 is required to be filed, in that from then on it will suffice for you to include the relevant information in your tax return rather than having to submit a separate form, thus reducing the risk of oversight on your part to practically nothing.
N.B.: The disclosure duty does not apply to loans having been taken out prior to the first of January 2013 including where these were subsequently refinanced with one’s own company or with a relative.