1. Loan interest is a non-deductible item of value-added tax, and it cannot be issued with special VAT tickets or deducted;

2. The handling fee can be deducted;

3. Loan refers to the business activities of lending funds to others to obtain interest income;

4. The loan acceptance business includes various expenses for occupying and borrowing funds, interest expenses incurred from credit card overdraft, interest expenses incurred from buying financial products for resale, interest expenses incurred from margin financing and securities lending, interest and interest-related expenses incurred from financing businesses such as leaseback, bill discount and lending.

The basic concept of loan:

1. Definition of loan: a loan refers to a financial activity in which a financial institution or a specific lender lends a certain amount of monetary funds to a borrower within an agreed time limit, and the borrower pays interest and returns the principal at the agreed interest rate after maturity;

2. Loan subjects: usually including banks, credit companies, internet financial platforms and other financial institutions, as well as individuals or enterprises with loan qualifications;

3. Types of loans: personal loans and corporate loans by purpose, short-term loans, medium-term loans and long-term loans by term, and secured loans and unsecured loans by guarantee;

4. Loan interest rate: the loan interest rate refers to the interest expenses that the borrower needs to pay to the lender during the loan period, usually expressed in the form of annual interest rate;

5. Loan repayment methods: including equal principal and interest repayment, equal principal repayment, interest before principal repayment, etc.

To sum up, the loan interest is not deductible, but the handling fee can be deducted. Loan refers to the business activities of lending funds to others to obtain interest income. Accepting loan services includes various expenses obtained by occupying and borrowing funds, interest expenses of credit card overdraft, etc.

Legal basis:

People's Republic of China (PRC) Civil Code

Article 670

The loan interest shall not be deducted from the principal in advance. If the interest is deducted from the principal in advance, the loan will be repaid according to the actual loan amount and the interest will be calculated.

Article 674

The borrower shall pay interest at the agreed time limit. If the time limit for paying interest is not stipulated or clearly stipulated, and cannot be determined according to the provisions of Article 510 of this Law, if the loan period is less than one year, it shall be paid together with the loan; If the loan term is more than one year, it shall be paid at the end of each year; if the remaining term is less than one year, it shall be paid together with the loan.