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If the agreed interest rate of financing funds is lower than the interest rate of similar loans of financial institutions in the same period, the tax authorities have the right to verify their interest income and require them to pay corresponding income tax according to the interest rate of similar loans of financial institutions in the same period.

The Notes on Business Tax Items stipulates that loans belong to the scope of "finance and insurance" tax items, and loans refer to the act of lending funds to others for use.

According to this regulation, no matter financial institutions or other units, as long as they lend funds to others, they should be regarded as lending activities and business tax should be levied according to the tax item of "financial insurance". And according to the provisions of the calculation and payment of urban maintenance and construction tax and education surcharge.

Is it necessary to pay tax on loan interest between legal persons and enterprises?

To pay taxes, loans between legal person enterprises belong to the business of buying and selling financial commodities, and the interest income of loans obtained by legal person enterprises (any unit or individual) must pay business tax and income tax.

Provisional regulations on business tax

Article 5 The turnover of taxpayers shall be the total price and other expenses collected by taxpayers for providing taxable services, transferring intangible assets or selling real estate. However, the following exceptions are made:

(1) If the taxpayer subcontracts the contracted transportation business to other units or individuals, the turnover shall be the balance of the total price and other expenses obtained by the taxpayer after deducting the transportation expenses paid to other units or individuals;

(2) If a taxpayer engages in tourism business, the turnover shall be the balance of the total price and extra-price expenses obtained by him after deducting the accommodation fees, meals, transportation fees, tickets for tourist attractions and travel expenses paid to other package tourism enterprises for tourists;

(3) If a taxpayer subcontracts a construction project to other units, the turnover shall be the balance of the total price and other expenses obtained after deducting the subcontracting money paid to other units;

(4) For the business of buying and selling foreign exchange, securities, futures and other financial commodities, the turnover shall be the balance of the selling price minus the buying price;

(five) other circumstances stipulated by the competent departments of finance and taxation of the State Council.

Is it necessary to pay taxes on borrowing funds between enterprises? The borrowing of funds between enterprises needs to be taxed, and the other is free borrowing between enterprises, which generally does not involve income tax or value-added tax in practice. However, if the affiliated enterprises are obviously designed for the purpose of tax avoidance, it is likely that the tax authorities will make adjustments and then pay value-added tax, additional tax and enterprise income tax. For more accounting information, please pay attention to other contents of this website.