when a company borrows money from an individual, its principal is included in the current account, and the interest paid should be included in the financial expenses.

It can be included in the financial expenses

However, according to the tax law, the interest on loans borrowed by non-financial enterprises can only be deducted before tax if it is not higher than the interest on bank loans in the same period, and the excess part is not allowed to be deducted before tax, which requires tax adjustment at the end of the year. In addition, personal business tax and personal income tax (2%) shall be withheld and remitted.