Legal analysis: (1) The interest income obtained from a single small loan with the interest rate not higher than the benchmark interest rate of the People's Bank of China 1.50% (inclusive) issued by financial institutions to small enterprises, micro-enterprises and individual industrial and commercial households shall be exempted from VAT; The interest income of a single small loan is 65,438+0.50% higher than the benchmark interest rate of the People's Bank of China in the same period, and the value-added tax is levied according to the current policy. (2) The interest income obtained by financial institutions from issuing a single small loan to small enterprises, micro-enterprises and individual industrial and commercial households is not higher than the interest income calculated according to the benchmark loan interest rate of the People's Bank of China for the same period 150% (inclusive), and is exempt from value-added tax; Value-added tax is levied on the excess according to the current policy. Financial institutions can choose one of the above two methods as the application method for tax exemption in the current year according to the fiscal year, and once selected, it cannot be changed in the fiscal year.

Legal basis: People's Republic of China (PRC) Tax Collection and Management Law.

Article 1 This Law is formulated with a view to strengthening the administration of tax collection, standardizing tax collection, safeguarding national tax revenue, protecting the legitimate rights and interests of taxpayers and promoting economic and social development.

Article 2 This Law is applicable to the collection and management of various taxes collected by tax authorities according to law.

Article 3 The collection, suspension, reduction, exemption, refund and supplementary payment of taxes shall be carried out in accordance with the law. Where the State Council is authorized by law, it shall be implemented in accordance with the administrative regulations formulated by the State Council. No organ, unit or individual may, in violation of the provisions of laws and administrative regulations, arbitrarily make decisions on tax collection, suspension, tax reduction, exemption, tax refund, overdue tax and other decisions inconsistent with tax laws and administrative regulations.

Article 4 Units and individuals that are obligated to pay taxes according to laws and administrative regulations are taxpayers. Units and individuals that have the obligation to withhold and pay taxes according to laws and administrative regulations are withholding agents. Taxpayers and withholding agents must pay taxes, withhold and remit taxes and collect and remit taxes in accordance with the provisions of laws and administrative regulations.