If your company is freshly established and has not yet generated regular income, you may occasionally advance money for its expenses. How can you obtain reimbursement for these expenses?
The first option is direct reimbursement. Whenever you incur a personal expense on behalf of your SRL, you can be reimbursed directly into your private account by the company. This reimbursement is a deductible expense for the company, with no personal taxation for you.
It’s not necessary for the invoice to be issued in the name of the SRL. Even if the invoice is in your personal name, the expenses can be reimbursed by the company, provided they are not purely private expenses.
It is imperative to keep supporting documentation for each specific reimbursement. Some expenses can also be reimbursed as a lump sum, such as daily travel allowances.
If the advanced expenses are high and cannot be immediately reimbursed through an expense allowance, another option is to record them on your C/C as a loan to the company. This grants a loan to the company without a specific maturity date.
Interest on the C/C’s credit balance can be charged to the company. These interest payments are tax-deductible for the company, and a 30% withholding tax must be applied.
It is crucial to adhere to the legal interest rate for C/C loans (currently 5.7% for 2023). A higher interest rate could result in requalification as a dividend.
Any expense reimbursement, whether made directly or via the C/C, must be mentioned on a tax form (form 281.20). This applies even to flat-rate reimbursements. However, there is tolerance if the invoice is in the name of the SRL, and you only advance the payment. In this case, the reimbursement does not need to be indicated on a tax form.
