The Ministry of Finance is extending the regulation until the end of 2022, which is beneficial for people with Swiss franc mortgages. Minister Magdalena Rzeczkowska confirms.
People who took mortgages in Swiss francs had a hard time. Not only has the exchange rate hovered around PLN 4.80 in recent months, but the Swiss central bank has raised interest rates.
Regulation protecting Frankowiczow
On March 11, 2022, the Ministry of Finance issued an order to stop the collection of income tax on certain income related to a mortgage loan. Part of the ministry’s decision was to stop taxing the loan in francs repaid on the basis of settlements with the bank.
– For another year, we are moving towards franchises and extending the tax break. Without this, it would be necessary to pay tax on the repaid loan amount, which is de facto tax income, Finance Minister Magdalena Rzeczkowska told the Polish Press Agency.
- The extension of this rule will help improve the situation of borrowers with housing loans in foreign currency - added Deputy Minister of Finance Artur Sobon.
Swiss bank raises interest rates
On December 15, the central bank decided to raise interest rates again. This time the base rate was increased by 50 basis points. In September, the SNB made a very strong correction up as much as 125 points. The base rate is currently 1 percent.
The information from the bank’s announcement is also important. “It is possible that an additional increase in the base rate of the SNB will be required to ensure price stability in the medium term.” - we read. Therefore, one should be prepared for further tightening of monetary policy, which will lead to further fluctuations in the Swiss franc.
Source: Wprost
