(1) Interest expenses incurred by general enterprises in borrowing from financial enterprises, interest expenses incurred by various deposits of financial enterprises and interest expenses incurred by inter-bank lending, and interest expenses incurred by enterprises in issuing bonds after approval can be deducted according to the facts.
(2) The interest expenses of general enterprises borrowing from non-financial enterprises shall not exceed the amount calculated according to the interest rate of similar loans of financial enterprises in the same period, and may be deducted before tax.
Policy basis: Article 38 of the Regulations for the Implementation of the Enterprise Income Tax Law of People's Republic of China (PRC).
Two, how to determine the interest rate of similar loans of financial enterprises in the same period?
"Interest rate of similar loans in the same period" refers to the loan interest rate provided by financial enterprises under the condition that the loan term, loan amount, loan guarantee and corporate reputation are basically the same. It can be the average interest rate of the same kind announced by financial enterprises in the same period, or the actual loan interest rate provided by financial enterprises to some enterprises.
Interest expenses on loans to non-financial enterprises shall not exceed the amount calculated according to the interest rate of similar loans of financial enterprises in the same period, and pre-tax deduction is allowed. This requires the enterprise to provide a "description of the interest rate of similar loans of financial enterprises in the same period" when paying interest for the first time and deducting it before tax according to the contract requirements, so as to prove the rationality of its interest expenditure.
"Description of similar loan interest rates of financial enterprises in the same period" shall include the similar loan interest rates provided by any financial enterprise in this province at the time of signing the loan contract.
Financial enterprises here refer to enterprises that can engage in loan business with the approval of relevant government departments, including banks, finance companies, trust companies and other financial institutions.
In practice, the interest rate of enterprises borrowing from trust companies is relatively high. In order to deduct the interest actually paid, an enterprise must provide an explanation of the interest rate of similar loans of financial enterprises in the same period. If they can't provide "explanation", they can only deduct it before tax according to the benchmark interest rate of China People's Bank for the same period.