Legal subjectivity:

In recent years, people with weak legal awareness have sometimes been punished for refusing to pay taxes on private loan interest. 1. How to pay tax on private loan interest According to Article 6 of the "Provisional Regulations of the People's Republic of China on Enterprise Income Tax", "Interest expenses incurred by taxpayers borrowing from financial institutions during the production and operation period shall be deducted according to the actual amount incurred; The interest expense on borrowing from non-financial institutions is allowed to be deducted if it is not higher than the amount calculated based on the interest rate of similar loans from financial institutions for the same period. "If the interest on a company's loan to an individual is paid according to the bank loan interest for the same period, it can be deducted in full. If the pre-tax deduction is higher than the bank loan interest rate for the same period, tax adjustments should be made. Regarding interest, whether it should be treated as a financial expense or capitalized depends on the purpose of the borrowing. Generally, interest on working capital borrowings is treated as a financial expense. Invoices must be provided for interest to be recorded, and the lender can apply to the tax bureau for issuance of invoices. Individuals who obtain interest must pay business tax and surcharges on the interest obtained and personal income tax. The personal income tax rate is 20%. 2. Reasons for paying personal income tax on interest income 1. Interest income obtained by individuals is one of the tax items of personal income tax. The legal basis is as follows: "Personal Income Tax Law of the People's Republic of China": Article 2 The following personal income, Personal income tax payable: (7) Interest, dividends, and bonus income. The scope of various personal incomes mentioned in Article 2 of the Tax Law of Article 8 of the "Implementation Regulations of the Individual Income Tax Law of the People's Republic of China": (7) Interest, dividends, and bonus income refer to those obtained by individuals owning debts and equity. interest, dividends, and bonus income. 2. Reductions and discounts. There are many types of interest income received by individuals, including interest income from government bonds, interest income from bank deposits, and interest income from loaned funds. Among them, the country has expressly stipulated tax exemptions and exemptions for interest income from government bonds and interest income from bank deposits. Taxpayers can enjoy corresponding preferential policies according to regulations. The withholding and payment agent shall calculate the withholding and payment of personal income tax in accordance with regulations. Article 4 of the "Personal Income Tax Law of the People's Republic of China" stipulates that the following types of personal income are exempt from personal income tax: interest on treasury bonds and financial bonds issued by the state. The interest on treasury bonds mentioned in Article 4, Item 2 of the Tax Law of Article 12 of the "Implementation Regulations of the Individual Income Tax Law of the People's Republic of China" refers to the interest obtained by individuals holding bonds issued by the Ministry of Finance of the People's Republic of China. The interest on financial bonds issued by the state refers to the interest earned by individuals holding financial bonds issued with the approval of the State Council. Article 12 of the "Personal Income Tax Law of the People's Republic of China" stipulates that the introduction, reduction, and suspension of personal income tax on savings deposit interest income and its specific measures shall be stipulated by the State Council. Article 5 of the "Implementation Measures for the Collection of Personal Income Tax on Interest Income from Savings Deposits" stipulates that interest income from education savings deposits obtained by individuals and interest income from other special savings deposits or special savings fund deposits determined by the financial department of the State Council are exempt from personal income tax. . In actual implementation, withholding and payment agents often ignore the personal income tax payable on "interest income from loaned funds" due to their lack of understanding of tax laws and relevant documents, or think that it is equivalent to deposit interest income and do not need to be taxed, resulting in a small amount of tax. Tax payments bring tax risks. In view of this, entities that borrow personal funds and pay interest need to pay special attention, and the personal income tax on interest income that should be withheld and paid must not be omitted. The above is the entire content of "How to pay taxes on private loan interest". I hope that after reading this, you will have a general understanding of how to pay taxes on private loan interest. The law is objective:

Civil Code

Article 670

Interest on borrowings shall not be deducted from the principal in advance. If interest is deducted from the principal in advance, the loan shall be returned and interest calculated based on the actual borrowed amount.

"Civil Code"

Article 676

If the borrower fails to repay the loan within the agreed time limit, the borrower shall repay the loan in accordance with the agreement or relevant national regulations. Pay overdue interest.

Civil Code

Article 677

If the borrower returns the loan in advance, unless otherwise agreed by the parties, the actual loan amount shall be Interest is calculated for the period.