I am an Indian national who moved from the U.S. to Germany last year. I will file for taxes in both countries. My German bank sent me W-8BEN form to fill out because my friend lent me $1000 as a loan. He sent me money from his American bank account to my German bank account. I got that loan in Dec 2016 and I paid back my friend in Jan 2017 (0% interest).
Now I need to know if I need to pay any taxes in this situation? Neither of us benefited anything from these two transactions. I read that 30% of the amount is to be paid in taxes but it was a loan. I am confused about this situation and I want to know how I can avoid making any wrong tax payment because the loan wasn't a gift.
