When calculating the taxable income of an enterprise, the penalty interest paid for overdue repayment of bank loans can be deducted before enterprise income tax.

Bank penalty interest belongs to the liquidated damages paid by taxpayers in accordance with the provisions of the economic contract, and is not an administrative fine. "3 1No." is stipulated in Article 12 of Schedule 3 of Supplementary Notice of State Taxation Administration of The People's Republic of China on Annual Tax Return of Enterprise Income Tax in People's Republic of China (PRC) (Guo 2008No. 108 1No.). Confiscated property loss': 1' Account amount' column reflects the actual amount of fines, fines and confiscated property losses incurred by taxpayers in accordance with the unified national accounting system, excluding the liquidated damages (including bank default interest), fines and legal fees paid by taxpayers in accordance with the provisions of economic contracts. The third column' increase' is equal to the 65438th column+0; The second column "tax amount" and the fourth column "reduction amount" are not filled in. "Therefore, the penalty interest of the bank can be deducted before the enterprise income tax.