1. VAT: Free loans belong to VAT and should be regarded as sales. If it is not treated as sales, it will violate the relevant provisions of value-added tax and there will be value-added tax risks. When taxpayers' unpaid loans are not treated as sales, interest income is generally calculated according to the bank's interest rate for similar loans in the same period. The interest income of this loan is subject to VAT according to the loan business, and the tax rate is 6%.
2. Personal income tax: if an enterprise lends funds to individual shareholders free of charge, it shall pay personal income tax according to the items of "interest, dividends and bonus income". Personal income tax shall be levied according to the item of "income from wages and salaries" if it is lent to individual employees of enterprises and meets the relevant provisions. In addition, if an enterprise borrows money from individual investors free of charge and fails to return it after the end of the tax year and it is not used for the production and operation of the enterprise, it can regard the unpaid loan as dividends and pay personal income tax.
3. Enterprise income tax: Lending funds to individual shareholders for free may violate the principle of independent transaction, thus reducing the taxable income or income of the enterprise or its related parties. At this time, the tax authorities have the right to make reasonable adjustments.