According to the "Regulations on the Implementation of the Enterprise Income Tax Law of People's Republic of China (PRC)", Article 38 The following interest expenses incurred by an enterprise in its production and business activities are allowed to be deducted: (1) Interest expenses incurred by non-financial enterprises in borrowing from financial enterprises, interest expenses incurred by financial enterprises in various deposits and interbank lending, and interest expenses incurred by enterprises in issuing bonds upon approval; (two) the interest expenses of non-financial enterprises borrowing from non-financial enterprises shall not exceed the amount calculated according to the interest rate of similar loans of financial enterprises in the same period. The Notice of State Taxation Administration of The People's Republic of China of the Ministry of Finance on Tax Policy Issues Concerning the Pre-tax Deduction Standard for Interest Expenses of Related Parties of Enterprises (Caishui [2008] 12 1No.) stipulates: 1. When calculating taxable income, if the interest expenses actually paid by enterprises to related parties do not exceed the following proportion and the relevant provisions of the tax law and its implementing regulations, they shall be deducted, exceeding some of the current and future years. The actual interest expenses paid by the enterprise to the related parties are as follows: (1) 5:1for financial enterprises; (2) Other enterprises, 2: 1. 2. Whether the enterprise can provide relevant information in accordance with the relevant provisions of the tax law and its implementing regulations to prove that the relevant trading activities conform to the principle of independent trading; Or if the actual tax burden of the enterprise is not higher than that of the domestic related parties, the interest expenses actually paid by the enterprise to the domestic related parties shall be deducted when calculating the taxable income. Three, enterprises engaged in financial business and non-financial business at the same time, the actual interest paid to related parties, should be calculated separately according to reasonable methods; If it is not calculated separately according to a reasonable method, the interest expenses allowed to be deducted before tax shall be calculated according to the proportion of other enterprises in Article 1 of this Notice. 4. The enterprise income tax shall be paid in accordance with the relevant provisions for the non-conforming interest income obtained by the enterprise from related parties. Therefore, the interest expenses that meet the above requirements can be deducted before tax.