Repost:
Lending between non-financial enterprises is allowed, but it is generally necessary.
The current tax law stipulates:
1. During the production and operation period, the amount calculated according to the loan interest rate of non-financial institutions in the same period will not be deducted.
2. If the taxpayer is exempted from customs declaration for more than 50% of its registered capital, its excess interest expenses shall not be deducted before tax.
3. Taxpayers' external use can be directly deducted, not necessarily capitalized, and included in the cost of related investment (but the deductible borrowing costs must meet the limits stipulated in the above tax law).
2. Is it legal for a subsidiary to lend money to the parent company?
Legal analysis: Although the subsidiary is actually controlled by the parent company, it has independent legal personality, obtained the business license of enterprise legal person in the industrial and commercial department, has its own company name and articles of association, and conducts business activities in its own name. A subsidiary shall bear civil liability independently with its own property and shall not be associated with the parent company. Unless the investor (that is, the shareholder of the subsidiary) makes a false capital contribution or has withdrawn the capital, and the company's personality denies it, the creditor may not recover the unpaid part from the investor. The subsidiary is an independent legal person enterprise, and its external relations are completely independent. The investor is the parent company of the subsidiary. As two completely independent legal persons, the parent company can lend money to its subsidiaries, and there is no mandatory disclosure requirement. However, it must comply with the procedures stipulated in Article 16 of the Company Law, that is, it must be resolved by the board of directors or the shareholders' meeting of the company, and it shall not exceed the limit stipulated in the company's articles of association. Article 16 of "People's Republic of China (PRC) Company Law" stipulates that the company's investment in other enterprises or providing guarantee for others shall be decided by the board of directors or the shareholders' meeting in accordance with the provisions of the company's articles of association; The total amount of investment or guarantee and the amount of individual investment or guarantee are limited in the company's articles of association and shall not exceed the prescribed limit. The first paragraph of Article 1 of the Provisions of the Supreme People's Court on Several Issues Concerning the Application of Laws in the Trial of Private Lending Cases stipulates that private lending as mentioned in these Provisions refers to the financing behavior among natural persons, legal persons and other organizations and among them.
Legal basis: Branch companies can be established in Article 14 of People's Republic of China (PRC) Company Law. The establishment of a branch company shall apply to the company registration authority for registration and obtain a business license. A branch company does not have legal person status, and its civil liability shall be borne by the company. A company may set up subsidiaries, which have legal personality and independently bear civil liabilities according to law.
3. Is it legal for domestic subsidiaries to borrow money from overseas parent companies?
Posting: Lending between non-financial enterprises is allowed, but generally a capital occupation fee is charged. The current tax law stipulates: 1. The expenses incurred in borrowing from non-financial institutions during production and operation are higher than the amount calculated according to the loan interest rate of similar financial institutions in the same period, which cannot be deducted before tax, but can be deducted before tax. 2. If the loan amount obtained by the taxpayer from the related party exceeds 50% of its registered capital, the excess interest expense shall not be deducted before tax. 3. The borrowing costs of the funds borrowed by taxpayers for foreign investment can be directly deducted without capitalization and included in the cost of related investment (but the deductible borrowing costs should meet the limits stipulated in the above tax law).
4. Is it legal for domestic subsidiaries to borrow money from overseas parent companies?
Repost:
Lending between non-financial enterprises is allowed, but generally a capital occupation fee is charged.
The current tax law stipulates:
1. The expenses incurred in borrowing from non-financial institutions during the production and operation period are higher than the amount calculated according to the loan interest rate of similar financial institutions in the same period, which cannot be deducted before tax, but can be deducted before tax.
2. If the loan amount obtained by the taxpayer from the related party exceeds 50% of its registered capital, the interest expenses of the excess part shall not be deducted before tax.
3. Borrowing expenses incurred by taxpayers in foreign investment and borrowing funds can be deducted directly, and need not be capitalized and included in the cost of relevant investment (but the deductible borrowing expenses must meet the limits stipulated in the above tax law).