According to the Announcement of People's Republic of China (PRC) and State Taxation Administration of The People's Republic of China on Several Issues Concerning Enterprise Income Tax (People's Republic of China (PRC) State Taxation Administration of The People's Republic of China Announcement No.25, 20 1 1) and Article 38 of the implementing regulations, the interest expenses borrowed by non-financial enterprises from non-financial enterprises are allowed to be deducted before tax. In view of China's current interest rate requirements for financial enterprises, enterprises should provide "a description of the interest rate of similar loans of financial enterprises in the same period" when paying interest for the first time and deducting it before tax according to the contract requirements, so as to prove the rationality of their interest expenses.

"Description of similar loan interest rates of financial enterprises in the same period" shall include the similar loan interest rates provided by any financial enterprise in this province at the time of signing the loan contract. Financial enterprises should be enterprises engaged in loan business with the approval of relevant government departments, including banks, finance companies, trust companies and other financial institutions. "Interest rate of similar loans in the same period" refers to the loan interest rate provided by financial enterprises under the condition that the loan term, loan amount, loan guarantee and corporate reputation are basically the same. It can be the average interest rate of the same kind announced by financial enterprises in the same period, or the actual loan interest rate provided by financial enterprises to some enterprises.