The interest paid by the enterprise can be recorded, but the interest paid by the legal person should not be paid by the enterprise.

According to Article 8 of the Enterprise Income Tax Law of People's Republic of China (PRC), reasonable expenses actually incurred by an enterprise, including costs, expenses, taxes, losses and other expenses, are allowed to be deducted when calculating taxable income.

There is no separate regulation on whether the interest generated by corporate borrowing for enterprises in the name of individuals can be deducted before tax. From the perspective of tax law, personal loan interest and enterprise loan interest cannot be confused. For the interest expenses incurred by enterprises borrowing from banks in the name of individuals, the interest statements are headed by individuals and are strictly related to other expenses unrelated to production and operation, and cannot be deducted before tax.

However, in actual treatment, the local competent tax authorities can strictly and reasonably verify the deduction of various expenses according to the relevant credentials and factual evidence provided by the enterprise.

It is more common for a legal person to "lend" a loan to an enterprise, and the legal person signs a loan contract with the enterprise and provides corresponding vouchers, so the interest generated can be deducted before tax.

Policy basis:

According to the document Notice of State Taxation Administration of The People's Republic of China on the Pre-tax Deduction of Enterprise Income Tax on Interest Expenditure of Enterprises Borrowing from Natural Persons (Guo [2009] No.777):

1. The pre-tax deduction of enterprise income tax shall be calculated according to the conditions stipulated in Article 46 of the Enterprise Income Tax Law of People's Republic of China (PRC) (hereinafter referred to as the tax law) and the Notice of the Ministry of Finance State Taxation Administration of The People's Republic of China on Tax Policy Issues Concerning the Pre-tax Deduction Standard for Interest Expenses of Related Parties of Enterprises (Cai Shui [2008]12654338).

2. Interest expenses incurred by an enterprise in borrowing from internal employees or other personnel other than those specified in Article 1 shall be deducted in accordance with the provisions of Article 8 of the Tax Law and Article 27 of the Regulations for the Implementation of the Tax Law if the borrowing conditions meet the following conditions at the same time.

Can a legal person borrow money from a company account?

If the company's financial system allows, legal persons can borrow money from the company's account.

When a legal person borrows money,

Borrow: other receivables-legal person,

Loans: bank deposits,

When the repayment is overdue,

Debit: bank deposit,

Loan: other receivables-legal person,

Other receivables refer to all kinds of receivables and temporary payments except notes receivable, accounts receivable, prepayments, dividends receivable and interest receivable.

Its main contents include all kinds of claims receivable and fines, such as claims collected from relevant insurance companies due to unexpected losses of enterprise property. Rent receivable for the rental package; All kinds of advance payments that should be collected from employees; Such as utilities paid in advance for employees, medical expenses borne by employees, etc. Pay a deposit, such as a deposit for renting a package; Other receivables and temporary payments.