How to deduct the borrowing interest expenses incurred by the enterprise?

This depends on the specific purpose of the borrowing. If it is to solve the shortage of working capital, the interest can be deducted before tax, but the purpose of the borrowing is For capital projects, such as building fixed assets, interest on construction of fixed assets, etc. cannot be deducted before tax;

New Enterprise Income Tax Law:

Article 38: The interests incurred by enterprises in the production and operation activities The following interest expenses are allowed to be deducted:

(1) Interest expenses on loans borrowed by non-financial enterprises from financial enterprises, interest expenses on various deposits and inter-bank lending by financial enterprises, and interest expenses on bonds issued by enterprises after approval ;

(2) The interest expense of non-financial enterprises borrowing from non-financial enterprises shall not exceed the amount calculated based on the interest rate of similar loans from financial enterprises in the same period.

Taxpayers borrow from related parties If the amount of the loan obtained exceeds 50% of its registered capital, the excess interest payment shall not be deducted before tax.

How to handle the accounting treatment of borrowing interest between enterprises?

Corporate loans can be divided into: working capital loans, fixed asset loans, credit loans, guaranteed loans, stock pledge loans, foreign exchange pledge loans, unit time deposit certificate pledge loans, gold pledge loans, syndicated loans, bank acceptance bills, bank acceptance bill discounts, Discounting of commercial acceptance bills, discounting of buyer or agreement interest-paying bills, domestic factoring with recourse, and export tax rebate account custody loans.

How to handle borrowings between enterprises, the financial department of the borrowing unit and The accounting entries made by the financial department of the lending unit are different.

1. If it is a financial enterprise, the accounting entries for calculating interest as operating income are:

Lending : Bank deposits

Loans: Main business income - interest income

2. If you are a non-financial enterprise, then the interest can directly offset financial expenses

Borrow: bank deposits

Credit: financial expenses-interest income

3. If it is a non-financial institution's own funds borrowed, it is generally calculated through other business income; if it is a loan, it can be offset Deduct interest expenses and record them in financial expenses.

For interest expenses incurred by borrowing companies, the other party will issue tax invoices on their behalf, and the interest paid by the company will be included in financial expenses - interest expenses.