The problem of pre-tax deduction of loan interest expenses has always been the focus and difficulty of taxpayers' attention. At the time of final settlement, this paper draws taxpayers' attention to the following issues. The following network xiaobian answers for you, hoping to help you. The difference between accounting of interest expenses and tax law In accounting treatment, the borrowing costs incurred by an enterprise, whether borrowed from financial institutions or non-financial institutions, should be capitalized or included in profits and losses according to the actual amount, regardless of the interest rate. In tax treatment, not all the actual interest expenses can be deducted as financial expenses. The tax law has strict restrictions on the scope and standard of deduction of loan interest expenses, and enterprises should make necessary adjustments when making annual settlement. What kind of documents should be used as legal documents for pre-tax deduction of interest expenses on loans from non-financial enterprises? According to the Provisional Regulations on Business Tax and the Notice of State Taxation Administration of The People's Republic of China City, People's Republic of China (PRC) on Printing and Distributing Business Tax Questions (Part I) (Guo [1995]No. 156), loans belong to the tax scope of "financial insurance", and the interest income obtained by non-financial enterprises or individuals from loans belongs to business activities, so business tax should be levied. Article 19 of the Measures for the Administration of Invoices stipulates that the payee shall issue an invoice to the payer when collecting money from foreign businesses. Therefore, the interest expenses incurred by an enterprise in borrowing from other enterprises or individuals should be based on the invoice as the legal proof of pre-tax deduction. In the practice of tax collection and management, if the beneficiary is unable to issue invoices, the enterprise or individual of the beneficiary is generally required to issue invoices on behalf of the tax authorities. Enterprises should use relevant agreements as relevant proof materials for paying interest, and the agreement should clearly stipulate the time and amount of interest. Interest expenses should be distinguished for specific purposes. According to the provisions of Article 8 of the Enterprise Income Tax Law and Articles 27, 37 and 38 of the Regulations for the Implementation of the Enterprise Income Tax Law, loan interest expenses shall be distinguished for specific purposes. First, whether the interest expense of the enterprise is the actual reasonable expense related to income, if not, it is not allowed to be deducted before the enterprise income tax. Second, whether the interest expenses of enterprises need to be capitalized. If an enterprise borrows money for the purchase and construction of fixed assets, intangible assets and inventories that can reach the predetermined saleable state after being built for more than 65,438+02 months, the reasonable borrowing costs incurred in the process of purchasing and constructing related assets shall be included in the relevant capital costs as capital expenses, and depreciation, amortization or deduction shall be made in accordance with relevant regulations. Reasonable borrowing costs incurred by enterprises in the process of uncapitalized production and operation, including interest expenses incurred by non-financial enterprises in borrowing from financial enterprises, interest expenses incurred by financial enterprises in various deposits and interbank lending, and interest expenses incurred by enterprises in issuing bonds upon approval, are allowed to be deducted. Identification and tax adjustment of related enterprises How to identify related parties? Article 109 of the Regulations for the Implementation of the Enterprise Income Tax Law stipulates that "related parties refer to enterprises, other organizations or individuals that have one of the following related relationships with enterprises: (1) There are direct or indirect control relationships in capital, operation, purchase and sale; (2) Being directly or indirectly controlled by a third party; (3) Having other interests. " Since borrowing money from related parties to pay interest is a related party transaction, the tax law stipulates that if an enterprise reduces its taxable income or income without charging or paying the price or expenses according to the business dealings between independent enterprises, the tax authorities have the right to make reasonable adjustments within 10 years from the business year, pay back the relevant tariffs on interest income and calculate interest. At the same time, it is stipulated that as long as the transactions between domestic related parties with the same actual tax burden do not directly or indirectly reduce the overall tax revenue of the country, in principle, transfer pricing investigation and adjustment will not be carried out. Tax Adjustment Method of Interest Expenditure If an enterprise borrows from both non-related parties and related parties at the same time, and the shareholder's capital contribution is not in place, and the ratio of debt to capital borrowed from related parties exceeds the limit, the interest that cannot be deducted shall be calculated separately. The loan interest expense that the enterprise can't deduct in that year = the non-related party loan interest rate exceeds the limit+the shareholder's contribution is not in place+the related party loan ratio exceeds the limit. To sum up, the income tax adjustment of enterprise loan interest expenses should pay attention to whether the borrower is a financial enterprise or a non-financial enterprise or individual; Second, we should pay attention to whether there is a relationship between the enterprise and the lender; Third, we should pay attention to whether the shareholder's capital contribution is in place and the proportion of related debt investment and equity investment is limited. At the same time, to master the pre-tax deduction, we must rely on legal and effective vouchers, that is, invoices issued by tax authorities, accurately understand the loan interest rates of similar financial enterprises in the same period, master the procedures and methods of related party identification and special tax adjustment, and be familiar with the calculation methods of various interest expenses. The above is about this legal knowledge, I hope I can help you. 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"People's Republic of China (PRC) tax collection and management law" Article 75 The tax-related incomes from fines and confiscations of tax authorities and judicial organs shall be turned over to the state treasury according to the tax warehousing budget levels.