Lenders who lend money to others shall pay business tax. The interest income obtained belongs to the taxable income of enterprise income tax. If it is a loan business between affiliated enterprises, the price and expenses shall be charged or paid according to the loan business between independent enterprises; If the amount of taxable income or income is reduced by not collecting or paying the price or fees according to the loan business between independent enterprises, the tax authorities have the right to make reasonable adjustments in accordance with the provisions of Article 36 of the Tax Administration Law.

At the same time: the loan enterprise should issue an invoice to the payer when collecting interest, and can apply to the tax agency for issuing an invoice for temporary use. When a borrowing enterprise pays interest to a loan enterprise or individual, it shall ask the payee for an invoice.

Tax treatment of loans between affiliated enterprises

First of all, the loan and capital occupation between affiliated enterprises need to conform to the principle of independent transaction;

Article 41 of the Enterprise Income Tax Law: If the business dealings between an enterprise and its related parties do not conform to the principle of independent transactions, and the taxable income or income tax of the enterprise or its related parties is reduced, the tax authorities have the right to make adjustments in a reasonable way.

Secondly, the direct loan interest of affiliated enterprises needs to meet certain conditions before being deducted before tax;

Article 38 (2) of the Regulations for the Implementation of the Enterprise Income Tax Law: If the interest expenses incurred by non-financial enterprises in production and business activities do not exceed the amount calculated according to the interest rate of similar loans of financial enterprises in the same period, deduction is allowed.

Thirdly, interest-free loans between affiliated enterprises need to be regarded as sales and paid VAT.

Article 14 of Annex I of the Notice on Comprehensively Pushing Forward the Pilot Project of Changing Business Tax to Value-added Tax: The following situations are regarded as sales services, intangible assets and real estate: (1) Units or individual industrial and commercial households provide services to other units or individuals free of charge, except for public welfare undertakings or services for the public. Article 27: The input tax of the following items shall not be deducted from the output tax: (6) Purchase of passenger transport services, loan services, catering services, daily services for residents and entertainment services.

Lenders in affiliated enterprises need to pay income tax and value-added tax as loan income even if they don't charge interest, while the interest paid by borrowers in similar loans of financial enterprises in the same period can be deducted before tax, and the excess can't be deducted, and the input tax of loan interest can't be deducted before tax. When we deal with fiscal and taxation issues, the actual situation is difficult to be absolutely consistent with the tax law norms and accounting standards, because the norms need to be briefly introduced and summarized, and there will always be various situations in actual business. Therefore, we need to carefully analyze the actual business and implement it in relevant laws and regulations.

Accounting treatment of loan interest between affiliated companies. There are legal and tax risks in the lending behavior between affiliated enterprises to some extent. It is suggested that enterprises should make a good plan for this, especially in the aspects of debt-to-capital ratio, interest rate level and invoice acquisition, and strictly follow the provisions of relevant laws and regulations. At the same time, in order to prevent the risk of tax adjustment, affiliated enterprises should actively prepare relevant certification materials for "independent transactions" when lending funds, so as to safeguard their own interests and minimize risks.