When doing income tax settlement, the tax bureau asked me how to divide the taxable and non-taxable parts of financial expenses and how to divide them.
Financial expenses are mainly expenses incurred for raising production funds, including interest expenses (minus interest income), exchange losses (minus exchange gains) and related procedures. Among them, "interest expenses" should be divided into taxable and non-taxable parts. Interest expenses within the scope permitted by the state can be charged before tax (i.e. non-taxable part), and those beyond the scope permitted by the state (e.g. interest expenses exceeding the bank interest or without legal procedures) can be charged after tax (i.e. you can set two subheads accordingly).