Loans between companies are subject to tax, and loans between companies, in which companies lend money to other companies, are subject to tax at the agreed interest rate; Loans between affiliated companies are subject to tax regardless of whether interest rates are charged; The unified borrowing and repayment business of enterprise groups is not higher than the loan interest rate of similar banks in the same period, and the interest charged to enterprise groups or subordinate enterprises within the group can be exempted from value-added tax, and the value-added tax should be paid in full for the part above.

Loans between companies will involve taxes, and the relevant provisions are as follows:

1. In production and operation, companies borrow from outside due to the lack of operating funds, especially when financial institutions such as banks can't provide credit funds to the company, the company will inevitably borrow from suppliers, distributors or other partners, and loans between companies will occur, that is, companies need to pay VAT and other related taxes when lending to other companies;

2. When a company lends money to other companies, the borrower and the borrower need to sign a loan agreement or contract, clearly stipulate the loan amount, loan time, loan interest rate and other related contents in the contract, and pay value-added tax, additional tax and enterprise income tax according to the actually collected loan interest income (interest income is incorporated into taxable income);

3. Unified loan and unified return business of enterprise groups. In the unified borrowing and unified repayment business, the interest charged by enterprise groups, core enterprises of enterprise groups and financial companies affiliated to the group from enterprise groups or subordinate enterprises within the group at a level not higher than the loan interest rate paid to financial institutions may be exempted from value-added tax. The value-added tax shall be paid in full for the part above.

to sum up, when an enterprise borrows money from an enterprise or an individual, it needs to pay relevant taxes such as value-added tax, additional tax, enterprise income tax, etc. according to the specific circumstances of the borrowing business between the borrower and the borrower and the contents of the loan agreement signed by both parties.

Legal basis:

Law of the People's Republic of China on the Administration of Tax Collection

Article 36

In business dealings between enterprises or institutions and places established by foreign enterprises in China engaged in production and business operations and their affiliated enterprises, prices and expenses shall be charged or paid according to business dealings between independent enterprises; The tax authorities have the right to make reasonable adjustments if the taxable income or income is reduced by not collecting or paying the price or expenses according to the business dealings between independent enterprises.