Do I have to pay tax on using a credit line with Grace period (on clients material gain)?
As of January 1, 2005 an amendment to the Tax Code was enforced, that is related to granting grace period for Credit Cards. In accordance with the amendment the benefit, gained by the client as a result of using the credit line on concessionary terms, determined by the bank and the client in an agreement, is not subject to taxation. From what moment is the interest charged? Whenever you fail to settle the debt in full until the date indicated in the statement, the interest will be charged in accordance with the rates as of the date of purchase until full repayment. Please note that cash transaction do not enjoy interest free grace period.
