The interest on private lending of real estate development enterprises can be deducted before tax. If an enterprise borrows money from an individual, the interest paid to it can be deducted before tax; If the receipt cannot be deducted before the enterprise income tax, the enterprise may require an individual to issue an invoice to the tax authorities on behalf of the enterprise, and deduct it before tax according to the regulations after obtaining the official invoice.

legal ground

Article 2 of the Notice on Tax Policy Issues Concerning Pre-tax Deduction Standard for Interest Expenses of Related Parties of Enterprises

If the enterprise can provide relevant information in accordance with the relevant provisions of the tax law and its implementing regulations, and prove that the relevant trading activities conform to the principle of independent trading; Or if the actual tax burden of the enterprise is not higher than that of the domestic related parties, the interest expenses actually paid to the domestic related parties shall be deducted when calculating the taxable income.

Article 46 of the Enterprise Income Tax Law

Interest expenses incurred when the proportion of creditor's rights investment and equity investment accepted by an enterprise from its related parties exceeds the prescribed standard shall not be deducted when calculating taxable income.