There was a moratorium until the end of 2023 – the authorities exempted material benefit from personal income tax for this period (paragraph 90 of Article 217 of the Tax Code). From January 1, 2024, tax must again be withheld from it, including if the loan was issued before that date.

If an employee or an interdependent physical person is given an interest-free loan or a loan at a rate lower than 2/3 of the Central Bank rate, personal income tax must be deducted from the material benefit for each month of use of the loan from January 1, 2024 (Articles 212 and 223 of the Tax Code).

The personal income tax rate on mat-benefits is 35% and 30% for non-residents. Withhold personal income tax at the time of the next cash payment and remit it within the usual time limits.