Legal analysis: need. Personal income tax is levied at the rate of 20%, and the tax is withheld and remitted by the enterprise that pays interest. Interest income from loans between non-financial enterprises needs to be taxed. To borrow money from affiliated enterprises and obtain interest income, value-added tax and additional tax shall be paid. However, taxpayers entrust funds to financial institutions to issue loans, or lend funds to other units or individuals by themselves or in other ways, and the interest income obtained is subject to VAT at 6% (3% for small-scale taxpayers) according to the tax item of "financial insurance".

Legal basis: Article 2 of the Individual Income Tax Law of People's Republic of China (PRC), individual income tax shall be paid for the following personal income: (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.