Yes, the tax rate of private lending interest is 20%.
Article 3 of the Individual Income Tax Law:
1. Income from wages and salaries is subject to the progressive tax rate of 3% to 45%.
2. The income from the production and operation of individual industrial and commercial households and the income from contracted operation and lease operation of enterprises and institutions shall be subject to an excessive progressive tax rate of 5% to 35%.
3. The income from remuneration for writing shall be taxed at a proportional rate of 20%, with a reduction of 30% according to the tax payable.
4. Income from labor remuneration is subject to the proportional tax rate of 20%. If the one-time income from labor remuneration is abnormally high, it may be levied, and the specific measures shall be formulated by the State Council.
5. Income from royalties, interest, dividends, bonuses, property leasing, property transfer, accidental income and other income shall be subject to a proportional tax rate of 20%.
Tips: The above information is for reference only.
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Do I have to pay taxes on personal loan interest?
No need.
Lending between individuals belongs to private lending and does not need to be taxed. However, the interest generated by borrowing is taxable, and those who reach the threshold must pay relevant taxes, such as value-added tax and personal income tax.
For example, it is clearly stipulated in the individual income tax law that the income from royalties, interest, dividends, bonuses, property leasing, property transfer, accidental income and other income shall be subject to a proportional tax rate of 20%.
In addition, the "Implementation Measures for the Pilot Reform of Business Tax to VAT" points out that the scope of VAT taxation includes financial services. The so-called financial services are the business activities of financial insurance, which naturally include loan services. It is precisely because the loan services provided are financial services that the interest earned is subject to 3% VAT.
The VAT surtax and personal income tax obligations involved in personal private lending are generally withheld and remitted by withholding agents. Pay attention to timely payment, or you may be fined.
Interest income tax is also called deposit interest income tax. This is a tax on interest income from deposits, prepayments and securities. In the early days of the People's Republic of China, the state dominated the private economy, and a large amount of deposits and advances were made to banks, banks and industrial and commercial households to earn interest.
Do individuals need to pay interest income tax when borrowing from enterprises?
1. When an enterprise borrows money from an individual and pays interest, it shall withhold and remit personal income tax. Personal income tax is calculated at 20% of interest income.
2. The interest extracted by the enterprise shall be included in the financial expenses-interest expenses, and business tax, urban construction tax, education surcharge and local education surcharge shall not be paid.
3. When an enterprise signs a loan contract with an individual, stamp duty shall be calculated and paid according to 5/10000 of the amount recorded in the contract.
4. Enterprises should withhold and remit personal income tax when paying loan interest to individuals, and withholding agents should supervise enterprises or relevant organizations to withhold and remit personal income tax in accordance with the law when paying tax payable to individuals.
5. Whether an enterprise borrows money from an individual should be decided by the enterprise and the individual through consultation. If the interest expenses of the enterprise's borrowing from individuals are deducted before the enterprise income tax, the individual who obtains the interest shall provide the enterprise with an interest income invoice. That is, individuals will go to the tax authorities after obtaining interest income.
Do I have to pay taxes on personal loan interest?
Whether personal loan interest should be taxed or not, according to the provisions of the Individual Income Tax Law, interest, dividends, bonus income, property lease income, accidental income and franchise income are subject to proportional tax rate, personal loan interest is subject to personal income tax at 20%, salary income is subject to excessive progressive tax rate, the tax rate is 3-45%, and the tax rate of remuneration income is 20%.
Provisions of Individual Income Tax Law on Individual Income Tax Rate
Income from wages and salaries shall be taxed at an excessive progressive rate of 3% to 45%.
The income from the production and operation of individual industrial and commercial households and the income from the contracted operation and lease operation of enterprises and institutions shall be subject to a progressive tax rate of 5% to 35% (the tax rate table is attached). 3. The income from remuneration for writing shall be taxed at a proportional rate of 20%, with a reduction of 30% according to the tax payable.
Income from remuneration for services shall be taxed at a proportional rate of 20%. If the one-time income from labor remuneration is abnormally high, it may be levied, and the specific measures shall be formulated by the State Council.
Income from royalties, interest, dividends, bonuses, property leasing, property transfer, accidental income and other income shall be taxed at a proportional rate of 20%.
Personal income tax shall be paid on the interest income obtained by private loans to companies.
Interest income shall be subject to personal income tax at the rate of 20%.
"Notice on Strengthening the Collection and Management of Personal Income Tax for High Income earners" stipulates that
For enterprises and other organizations that borrow money from individuals and pay interest, they should check the relevant pre-tax deduction vouchers of income tax and supervise the enterprises or relevant organizations to withhold and pay personal income tax according to law. Is it necessary to pay tax on the interest of personal loans of enterprises? According to insiders, this is actually a misunderstanding, because the country stopped collecting personal income tax on savings interest on June 5438+00, 2008. Therefore, it is a misunderstanding that individuals should not pay personal income tax on loan interest obtained from enterprises.
Reportedly, according to the Notice of State Taxation Administration of The People's Republic of China, Ministry of Finance of People's Republic of China (PRC) on Personal Income Tax Policy on Savings Deposit Interest, the interest earned by individuals from savings deposits of financial institutions is temporarily exempted from personal income tax. The term "savings institutions" as mentioned in these Provisions refers to commercial banks, urban credit cooperatives, rural credit cooperatives and other financial institutions that absorb public deposits with the approval of the State Council Banking Regulatory Authority. It can be seen that the interest income obtained by individuals borrowing from enterprises (non-financial institutions) belongs to creditor's rights dividend income.
To sum up, whether the personal loan interest is taxable or not, the enterprise should fulfill the obligation of withholding and remitting when paying the personal loan interest, and the applicable proportional tax rate for labor remuneration is 20%. For those who get extremely high remuneration at one time, an additional levy should be imposed. Enterprises borrow money from individuals and pay interest, withholding and paying personal income tax.
Does the loan interest income include tax?
Legal analysis: enterprise loan interest income is subject to VAT. Individuals who want to lend money to enterprises have to pay value-added tax, and invoices can be issued by the tax bureau (0.05% stamp duty will be required when issuing invoices); Dividends and dividend income should also be subject to personal income tax at the rate of 20%. So the loan interest includes tax.
1, 0.05 ‰ shall be applied to sign the loan contract;
2. According to the relevant provisions of the Provisional Regulations on Business Tax, enterprises that have obtained interest income should pay business tax in full at 5% of the tax item of "financial insurance";
3. Interest income is paid as investment income.
The difference between general loan interest and special loan interest;
1 has different meanings.
(1) The interest expenses incurred by "special loan" before the completion of fixed assets and the interest expenses incurred before the fixed assets reach the scheduled usable state are included in the value of built fixed assets and capitalized.
(2) The "interest expense" in financial expenses refers to the interest expense and related handling fees incurred by an enterprise to raise funds needed for production and operation.
2. Different production stages
(1) Interest expenses incurred by financial expenses are recorded in the "period expenses" of the enterprise.
(2) Interest expenses incurred from "special loans" before the completion of fixed assets are included in the value of fixed assets: (projects under construction).
3. Interest calculation is different.
During the capitalization of borrowing costs, the capitalization amount of interest in each accounting period (including amortization of discount or premium) shall be determined according to the following methods:
(1) Where a special loan is borrowed for the purchase, construction or production of assets eligible for capitalization, it shall be determined according to the actual interest expenses incurred in the current period of the special loan, minus the interest income obtained by depositing unused loan funds in the bank or the investment income obtained by temporary investment.
(2) Where an enterprise occupies a general loan for the purpose of purchasing, constructing or producing assets that meet the capitalization conditions, it shall calculate and determine the interest amount that should be capitalized on the general loan according to the weighted average of the capitalization rate of the occupied general loan multiplied by the accumulated asset expenditure exceeding the special loan. The capitalization rate is calculated and determined according to the weighted average interest rate of general loans.
(3) If there is a discount or premium on the loan, the amount of the discount or premium to be amortized in each accounting period shall be determined according to the effective interest rate method, and the interest amount in each accounting period shall be adjusted. During the capitalization period, the capitalization amount of interest in each accounting period shall not exceed the interest amount actually incurred in the current period of the relevant loan.
Legal basis: Article 2 of the Individual Income Tax Law of People's Republic of China (PRC), the following personal income shall be subject to individual income tax:
(1) Income from wages and salaries;
(2) Income from remuneration for labor services;
(3) Income from remuneration;
(4) Income from royalties;
(5) Operating income;
(6) Income from interest, dividends and bonuses;
(7) Income from property lease;
(8) Income from property transfer;
(9) Accidental income.
Individual residents who obtain income from items 1 to 4 of the preceding paragraph (hereinafter referred to as comprehensive income) shall calculate individual income tax according to the tax year; Non-resident individuals who obtain income from items 1 to 4 of the preceding paragraph shall calculate individual income tax on a monthly or itemized basis. Taxpayers who obtain income from items 5 to 9 of the preceding paragraph shall calculate individual income tax separately in accordance with the provisions of this law.
How to pay taxes on personal loan interest?
Interest on personal loans is generally tax-free. Interest, dividends, bonus income, property lease income, accidental income and franchise income are subject to proportional tax rate, personal income tax is paid at 20% for personal loan interest, 3-45% for wages and salaries, and 20% for remuneration income.
legal ground
Article 2 of the Individual Income Tax Law
The following personal income shall be subject to personal income tax:
(1) Income from wages and salaries;
(2) Income from remuneration for labor services;
(3) Income from remuneration;
(4) Income from royalties;
(5) Operating income;
(6) Income from interest, dividends and bonuses;
(7) Income from property lease;
(8) Income from property transfer;
(9) Accidental income.
Individual residents who obtain income from items 1 to 4 of the preceding paragraph (hereinafter referred to as comprehensive income) shall calculate individual income tax according to the tax year; Non-resident individuals who obtain income from items 1 to 4 of the preceding paragraph shall calculate individual income tax on a monthly or itemized basis. Taxpayers who obtain income from items 5 to 9 of the preceding paragraph shall calculate individual income tax separately in accordance with the provisions of this law.
skill
The above answer is only for the current information combined with my understanding of the law, please refer carefully!
If you still have questions about this issue, I suggest you sort out relevant information and communicate with professionals in detail.
Is it necessary to pay tax on the interest income of personal loans to the company?
Personal loans to companies need to be taxed. It mainly includes value-added tax and personal income tax. Personal income tax shall be paid on the interest income obtained from personal loans to the company. Taxpayers need to pay taxes in RMB. If they settle in a currency other than RMB, they need to convert it into RMB to calculate the required tax. Under normal circumstances, the personal income tax rate is 20%. Taxpayers can go to the tax bureau to issue invoices if necessary. That is, according to the law, taxpayers provide taxable services, transfer intangible assets or sell real estate, and calculate the taxable amount according to the turnover and the prescribed tax rate. Calculation formula of tax payable:
Taxable amount = turnover × tax rate
The turnover is calculated in RMB. If a taxpayer settles its turnover in a currency other than RMB, it shall be converted into RMB for calculation.
legal ground
"Provisional Regulations of the People's Republic of China on Business Tax" Article 4 Taxpayers who provide taxable services, transfer intangible assets or sell real estate shall calculate the taxable amount according to the turnover and the prescribed tax rate. Calculation formula of tax payable:
Taxable amount = turnover × tax rate
The turnover is calculated in RMB. If a taxpayer settles its turnover in a currency other than RMB, it shall be converted into RMB for calculation.
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