After the reform of the camp, the interest charged by enterprises actually belongs to financial services, and the VAT rate applicable to financial services is 6%, so the tax rate of loan interest is also 6%.
According to Article 4 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 Value-added Tax (Caishui [2016] No.36) and the Provisions on the Transition Policy of Changing Business Tax to Value-added Tax, after a financial enterprise issues a loan, the interest receivable within 90 days from the interest settlement date shall be subject to value-added tax according to the current regulations, and the interest receivable within 90 days after the interest settlement date shall not be subject to value-added tax temporarily until the interest is actually received.
Extended data
Generally speaking, the following kinds of current interest income are exempt from VAT:
(1) Financial transactions between financial institutions and the People's Bank of China. Include loans from that people's bank of China to general financial institution and rediscounts from the people's bank of China to commercial banks.
(2) Inter-bank business. Capital accounting transactions between different banks and offices in the same banking system.
(3) Capital transactions between financial institutions. It refers to the short-term (including one year) unsecured financing between financial institutions that enter the national interbank lending market through the national unified interbank lending network with the approval of the People's Bank of China.
(4) Cash transfer between financial institutions.
State Taxation Administration of The People's Republic of China, Ministry of Finance-Notice on comprehensively promoting the pilot project of changing business tax to value-added tax