Q: A decoration company located in Liuhe District, Nanjing is a small company with a short history. Because the application for loan from the bank was not approved, in order to solve the urgent need, the company borrowed 2 million yuan from another familiar enterprise at the beginning of 20 14 for daily operation, with a term of 2 years, and the agreed annual interest rate was 15%, and the interest was paid at the end of each year. However, in the process of corporate income tax settlement in 20 14, Li, the company's accountant, consulted that the company had to pay 300,000 yuan of loan interest in 20 14. How should this interest expense be deducted before tax? According to Article 1 of the Announcement of People's Republic of China (PRC) and State Taxation Administration of The People's Republic of China on Several Issues Concerning Enterprise Income Tax (People's Republic of China (PRC) State Taxation Administration of The People's Republic of China Announcement No.34, No.2011), the interest expenses borrowed by non-financial enterprises from non-financial enterprises shall be deducted before tax. In view of the current situation of interest rate requirements for financial enterprises in China, enterprises should provide? What is the interest rate of similar loans of financial enterprises in the same period? To prove the rationality of its interest expense. ? What is the interest rate of similar loans of financial enterprises in the same period? , which should include the interest rate of similar loans provided by any financial enterprise in the province at the time of signing the loan contract. Financial enterprises should be enterprises engaged in loan business with the approval of relevant government departments, including banks, finance companies, trust companies and other financial institutions. ? Interest rate of similar loans in the same period? Refers to the loan interest rate provided by financial enterprises under the condition that the loan term, loan amount, loan guarantee and corporate reputation are basically the same. It can be the average interest rate of the same kind announced by financial enterprises in the same period, or the actual loan interest rate provided by financial enterprises to some enterprises. Therefore, the decoration company where Li Accountant works can calculate deductible interest expenses according to the above provisions, and provide relevant certification materials to the competent tax authorities when handling the declaration of final settlement.