Q: Is there any limit on the interest rate of financial institution loan interest that can be deducted before tax? Are entrusted loans obtained by enterprises through banks considered loans from financial institutions? Answer: 1. According to Article 38 (1) of the "Regulations on the Implementation of the Enterprise Income Tax Law of the People's Republic of China" (State Council Order No. 512, 2007), "Interest expenses on loans borrowed by non-financial enterprises from financial enterprises, Deductions are allowed for various deposit interest expenses and inter-bank lending interest expenses of financial enterprises, and interest expenses for bonds issued by enterprises upon approval. In other words, the interest rates of loans issued through banks will be subject to the upper and lower limits of loan interest rates set by the relevant laws and regulations of the bank itself. , corporate income tax regulations no longer limit the interest rate. 2. According to Article 2 of the "General Principles of Loans" promulgated by the People's Bank of China in 1996, the term "lender" as mentioned in these General Principles refers to Chinese-funded financial institutions established in accordance with the law in China to engage in loan business. At the same time, Article 7 regulates entrusted loans as one of the three types of loans operated by financial institutions: "proprietary loans, entrusted loans and specific loans". Therefore, entrusted loans belong to financial institution loans. Editor's Recommendation >>> 2013 Corporate Income Tax Final Settlement Course Series Practical Accounting Practice for New Accountants - Teach You Step-by-Step Accounting 66