How to offset the interest on corporate loans?
First of all, we must understand what loan interest is. Loan interest refers to the reward that the lender gets from the borrower for issuing monetary funds, and it is also the price that the borrower must pay for using the funds.
Bank loan interest rate refers to the ratio of interest amount to principal balance during the loan period, which is determined by the loan contract interest rate signed by banks and other financial institutions as lenders. Both parties can only negotiate within the upper and lower limits of interest rates stipulated by the Bank of China. The loan interest paid belongs to the loan service, and even if the special VAT invoice is obtained, the VAT shall not be deducted.
In addition, the purchased passenger services, loan services, catering services, daily services of residents and entertainment services cannot be deducted from the output tax. The investment and financing consulting fees, handling fees, consulting fees and other fees directly related to the loan paid by taxpayers to the lender by accepting the loan service shall not be deducted from the output tax.
However, after the enterprise loans, the interest expenses generated by borrowing from the bank can basically be deducted before tax. However, enterprises should pay attention to the fact that if they find that they do not conform to the principle of independent trading, they will transfer the funds borrowed by banks to other enterprises without compensation, fail to pay the capital of enterprises in full and on time, and pay the interest expenses of the unpaid part of the corresponding loans, and may not deduct them before tax.
The above is the sharing of the related content of "How to offset the tax on enterprise loan interest", and I hope it will help everyone!