Whether the loan interest income is taxed is a common problem in accounting work. When there is a problem in the capital chain of an enterprise, it is generally through borrowing money to tide over the immediate difficulties. This paper introduces whether the loan interest income is taxed, so let's follow the deep space network to find out!

Is it necessary to pay tax on loan interest income?

1. Interest income from loans between enterprises is subject to VAT. Since the interest charged by enterprises belongs to financial services, the value-added tax rate of financial services is 6%, so the tax rate of loan interest is also 6%.

2. If you borrow money from affiliated enterprises and earn interest income, you should pay value-added tax and additional tax. In addition, for the loan contract, stamp duty is also required.

3. According to the provisions of the tax law, if a taxpayer entrusts a financial institution to issue loans or lends funds to other units or individuals by himself or in other ways, the interest income obtained shall be subject to VAT.

What tax should I pay for personal loan interest income?

Personal income tax is required for personal loan interest income, and the applicable tax rate is 20%.

According to the individual income tax law, interest, dividends and bonus income are subject to proportional tax rate, and individual income tax should be paid.

How to pay taxes on loan interest charged between enterprises? How much is the tax rate?

How to make accounting entries for loan interest income?

1. If it is a financial enterprise, the interest is recorded as operating income, and the accounting entries are as follows:

Debit: bank deposit

Loan: main business income-interest income

2. If it is a non-financial enterprise, the interest can directly offset the financial expenses. The accounting entries are as follows:

Debit: bank deposit

Loans: financial expenses-interest income

3. If a non-financial institution lends its own funds, it is generally accounted for through other business income; If it is a loan, the interest expense should be deducted and recorded in the financial expense.

Value-added tax accounting entries of loan interest income

The loan interest received by the enterprise shall be included in the payment of value-added tax according to the income of the enterprise. If an enterprise takes loan interest as its main source of income, it shall be included in its main business income. The entries are as follows:

Borrow: interest receivable

Loan: income from main business

Taxes payable-VAT payable