Hello, after company A obtains a loan from the bank, it lends it to company B, and charges interest according to the bank loan rate (exactly the same as the interest charged by the bank). Excuse me: Is it necessary to pay business tax on the interest charged by Company A?

Professional answer

The interest charged by Company A to Company B is subject to business tax. Non-financial institutions provide funds to the other party and collect capital occupation fees, such as borrowing working capital between enterprises and collecting capital occupation fees, the administrative organs or competent departments of enterprises provide funds to subordinate units or enterprises and collect capital occupation fees, and rural cooperative foundations provide funds to farmers and collect capital occupation fees. According to the notes of business tax items, 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, any act of lending money to others, whether it is a financial institution or other unit, should be regarded as lending. Therefore, Company A should pay business tax according to the tax item of "financial insurance".