The bank loan interest paid by the general taxpayer in the bank loan shall not be deducted from the input tax.

Annex 1 of the Notice of the Ministry of Finance of State Taxation Administration of The People's Republic of China on Comprehensively Promoting the Pilot Project of Changing Business Tax to VAT (Caishui [2016] No.36): Implementation Measures for the Pilot Project of Changing Business Tax to VAT;

Article 27 The input tax of the following items shall not be deducted from the output tax:

(six) the purchase of passenger services, loan services, catering services, residents' daily services and entertainment services.

2. Can the loan interest be deducted?

Hello, the loan interest is not deductible.

Provisions on matters related to the pilot reform of business tax to value-added tax (IV) Input tax. 3. The investment and financing consulting fees, handling fees, consulting fees and other expenses directly related to the loan paid by the taxpayer to the lender by accepting the loan service shall not be deducted from the output tax. ”。 It is clearly stipulated here that the expenses related to financing shall not be deducted from the input tax, but the interest expenses or interest expenses are not clearly stated.

3. Can the interest invoice be deducted?

Not deductible.

Special VAT invoices for loan interest issued by banks shall not be deducted.

The loan interest, investment and financing consulting fees, handling fees, consulting fees and other expenses directly related to loans paid by taxpayers to lenders when accepting loan services shall not be deducted from the output tax.

According to Caishui [2065438+06] No.36 Annex 1 Financial Services Bill, the fees paid by banks that have nothing to do with loan services are directly charged financial services, and special invoices for value-added tax can be obtained, and the input tax can be deducted according to regulations.

Notice of State Taxation Administration of The People's Republic of China, Ministry of Finance on Comprehensively Promoting the Pilot Project of Changing Business Tax to VAT (Caishui [2016] No.36): Article 27 The implementation measures of changing business tax to VAT shall not be deducted from the output tax:

(1) Goods purchased, processing, repair and replacement services, services, intangible assets and real estate used for simple tax items, items exempted from value-added tax, collective welfare or personal consumption. The fixed assets, intangible assets and real estate involved only refer to the fixed assets, intangible assets (excluding other equity intangible assets) and real estate dedicated to the above projects.

The "purchased loan service" shall not be deducted from the output tax. At the same time, it is stipulated that taxpayers shall accept the loan service and pay the lender the investment and financing consulting fees, handling fees and consulting fees directly related to the loan, and shall not deduct the input tax from the output tax.

This means that the interest expenses and other directly related expenses paid by enterprises need to pay 6% value-added tax after the reform of the camp, which cannot be deducted from the input.

For capital-intensive industries (such as financial investment, real estate, etc. ), the annual interest expenses paid by enterprises to banks or related financial institutions are usually huge. If the value-added tax generated by the loan interest is borne by the buyer, but the enterprise can't deduct the input, it will undoubtedly increase the tax burden of the circulation link of the enterprise, objectively require the enterprise to seek other financing methods to reduce the cost of using funds, and in a sense, it will promote the reform of the financing methods of the enterprise.

4. Can the loan interest be deducted from VAT?

Corporate loan interest?

Annex/KLOC-0 of the Notice of the Ministry of Finance of State Taxation Administration of The People's Republic of China on Comprehensively Promoting the Pilot Project of Changing Business Tax to VAT (Caishui [20 1 6] No.36): Article 27 of the Implementation Measures for Changing Business Tax to VAT stipulates that the input tax of the following items shall not be deducted from the output tax:

(six) passenger services, daily services and entertainment services purchased for residents.

Attachment: Notes on sales services, intangible assets and real estate:

1. loan service. Loan refers to the business activities of lending funds to others to obtain interest income. All income, including interest during the holding period (including maturity) of financial commodities (capital preservation income, remuneration, overdraft interest income from capital occupation, interest income from buy-back financing, leaseback after financing, bill negotiation, penalty interest, bill discount, borrowing, etc.) and interest-bearing income. ), VAT shall be paid according to the loan service.

Financing sale and leaseback refers to the business activities that the lessee sells assets to enterprises engaged in financing sale and leaseback business for the purpose of financing, and the enterprises engaged in financing sale and leaseback business lease assets to the lessee.

The fixed profit or guaranteed profit collected from the investment of monetary funds shall be served according to the loan.

Annex 2: Article 1 of the Provisions on Relevant Matters Concerning the Pilot Project of Changing Business Tax to VAT stipulates that during the pilot reform of VAT, the relevant policies of the pilot taxpayers [refer to the pilot implementation measures (hereinafter referred to as the pilot implementation measures)].

(4)

3. Taxpayers shall not deduct the input tax from the output tax when accepting the loan service and paying the loan extension fee, consulting fee and other expenses to the lender.

Therefore, the interest paid by taxpayers on loans to non-resident enterprises (including banks) and the investment and financing consulting fees, handling fees and consulting fees directly related to the loans are deducted from their input tax.