When borrowing between enterprises, the interest earner shall pay VAT and additional tax. The corporate VAT rate of general taxpayers is 6%, and the VAT rate of small-scale taxpayers is 3%. Value-added tax is a turnover tax based on the value-added amount of goods (including taxable services) generated in the circulation process.

legal ground

Article 3 of the Individual Income Tax Law of People's Republic of China (PRC)

Personal income tax rate: 1. The income from wages and salaries is subject to an excessive progressive tax rate of 3% to 45% (the tax rate table is attached). Two, the income from the production and operation of individual industrial and commercial households and the income from the contracted operation and lease operation of enterprises and institutions shall be subject to an excessive progressive tax rate of 5% to 35% (the tax rate table is attached). 3. The income from remuneration for writing shall be taxed at a proportional rate of 20%, with a reduction of 30% according to the tax payable. 4. Income from labor remuneration is subject to the proportional tax rate of 20%. If the one-time income from labor remuneration is abnormally high, it may be levied, and the specific measures shall be formulated by the State Council. 5. Income from royalties, interest, dividends, bonuses, property leasing, property transfer, accidental income and other income shall be subject to a proportional tax rate of 20%.