1. Interest income from bank deposits is included in financial expenses, which affects the total profit and requires income tax.
2. Income in debt interest is exempt from enterprise income tax, and interest income between non-financial institutions and banks is subject to enterprise income tax.
According to Article 6 of Chapter I General Provisions of the Enterprise Income Tax Law of People's Republic of China (PRC), the income obtained by an enterprise from various sources in monetary and non-monetary forms is the total income. Including:
(1) Revenue from the sale of commodities;
(2) Income from providing labor services;
(3) Income from property transfer;
(four) dividends, bonuses and other equity investment income;
(5) Interest income;
Therefore, interest income is a part of the total income stipulated in the enterprise income tax law, and the interest on bank deposits should be included in the taxable income, and the enterprise income tax should be calculated and paid according to the stipulated taxable income rate.
(1) Further reading on interest income tax payment of financial institutions;
Interest income refers to the income that an enterprise provides funds to others for use but does not constitute equity investment, or that others occupy enterprise funds, including deposit interest, loan interest, bond interest, debt interest and other income.
Interest income, according to the date of interest payable by the debtor as agreed in the contract, confirms the realization of income.
The term "interest income" as mentioned in Item (5) of Article 6 of the Enterprise Income Tax Law refers to the income that an enterprise provides funds to others for use, but does not constitute equity investment, or that others occupy enterprise funds, including deposit interest, loan interest, bond interest, arrears interest and other income. Interest income, according to the date of interest payable by the debtor as agreed in the contract, confirms the realization of income.
References:
Network interest income
(2) Can the interest income obtained by financial institutions be exempted from VAT?
The Supplementary Notice of the Ministry of Finance State Taxation Administration of The People's Republic of China on the Value-added Tax Policy for Inter-bank Transactions of Financial Institutions (Caishui [2065438+06] No.70) stipulates that:
1. The interest income obtained by financial institutions from the following businesses is exempt from VAT, which belongs to the interest income from financial interbank transactions as mentioned in Item (23) of Article 1 of the Transitional Policy Provisions on Changing Business Tax to VAT (Caishui [2065438+06] No.36, hereinafter referred to as the Transitional Policy Provisions):
(1) interbank deposits.
Interbank deposit refers to the deposit of funds between financial institutions, in which depositors are only financial institutions qualified to absorb deposits.
(2) Inter-bank loans.
Interbank lending refers to the interbank lending business given by laws and regulations to financial institutions with this business scope. The financial institutions with the business scope given by laws and regulations mentioned in this article mainly refer to financial institutions that have the business of "borrowing from financial institutions" between rural credit cooperatives and are within the business scope listed in the Business License of Financial Institutions.
(3) Inter-bank payment.
Inter-bank payment refers to the financing behavior that commercial banks (trustees) accept the entrustment of financial institutions (customers) to pay corporate customers, and customers repay the principal and interest on the agreed repayment date.
(4) Repurchase financial products by buyout.
Buying and selling financial products by buyout means that the holder of financial products (the buyback party) sells financial products such as bonds to the purchaser of bonds (the reverse repurchase party), and both parties agree that the buyback party will buy back the same amount of financial products such as bonds from the reverse repurchase party at the agreed price at a certain date in the future.
(5) Holding financial bonds.
Financial bonds refer to the securities issued by legally established financial institutions in People's Republic of China (PRC) in the national inter-bank and exchange bond markets, which repay the principal and interest as agreed.
(6) Interbank certificates of deposit.
Interbank deposit certificates refer to book-entry time deposit certificates issued by banking deposit financial institutions as legal persons in the national interbank market.
(3) How to pay taxes on interest income?
If it is the interest earned by the company, the enterprise income tax will be paid together at the end of the year. If it is the interest on personal deposits, there is no need to pay a tax.
People's Republic of China (PRC) enterprise income tax law
(Adopted at the Fifth Session of the Tenth National People's Congress on March 6, 2007)
Article 1 Within the territory of People's Republic of China (PRC), enterprises and other income-earning organizations (hereinafter referred to as enterprises) are taxpayers of enterprise income tax and shall pay enterprise income tax in accordance with the provisions of this Law.
Article 6 The income in monetary form and non-monetary form obtained by an enterprise from various channels shall be the total income. Including:
(1) Revenue from the sale of commodities;
(2) Income from providing labor services;
(3) Income from property transfer;
(four) dividends, bonuses and other equity investment income;
(5) Interest income;
(6) Rental income;
(7) Royalty income;
(8) Receiving donation income;
(9) Other income. Accounting entries, unified calculation at the end of the year. If the enterprise needs to pay income tax for profits, make the following entries:
Debit: income tax expense
Loan: tax payable-enterprise income tax payable
Borrow: tax payable-enterprise income tax payable
Loans: bank deposits
Debit: this year's profit
Loans: income tax expenses, personal savings deposits.
Interest income generated from savings deposits before 1999 10 3 1 is not subject to individual income tax; Personal income tax shall be levied at the reduced rate of 20% on the interest earned from savings deposits from June 5438+0999 1 1 to August 14, 2007; Personal income tax shall be levied at the reduced rate of 5% on the interest earned from August 15, 2007 to August 8, 2008 10; Interest income generated after June 9, 2008 is temporarily exempt from personal income tax. Each time period should be calculated in sections.
(4) How to add VAT to the interest income of financial institutions?
Output tax: the income of the bank includes tax, so the tax rate should be multiplied by the amount excluding tax, so the version of the output tax that the bank has to pay = (5000+3000)/1.06 * 0.06 = 4,528,300 yuan.
Input tax: because the input of 500,000 yuan obtained from rights is tax-free and cannot be deducted, the input tax = (200-50) * 0.17 = 255,000 yuan.
Therefore, VAT payable = 4,528.3-25.5 = 4,273,300 yuan.
5] What is the tax on interest income?
Whether interest income needs to be taxed depends on the industry in which the enterprise is located. Financial enterprises need to pay taxes to obtain interest income, and they need to pay urban construction tax and education surcharge. The accounting entries for tax payment are: debit: main business tax and surcharge-urban construction tax-main business tax and surcharge-education tax credit: tax payable-urban construction tax and other payables-education surcharge.
(5) Extended reading of interest income tax payment of financial institutions:
Accounting treatment of interest income:
1. This account accounts for the interest income recognized by enterprises (finance), including the interest income of various loans (syndicated loans, trade financing, discount and discounted cash, agreed overdraft, credit card overdraft, refinancing, advances, etc.). ), capital transactions with other financial institutions (central banks, peers, etc.). ), buy financial assets for resale, etc.
Two, this course can be detailed accounting by business category.
3. On the balance sheet date, the enterprise shall debit the interest receivable calculated and determined according to the contract interest rate, credit the interest income calculated and determined according to the amortized cost and the actual interest rate, and debit or credit the loan interest adjustment and other subjects according to the difference.
If the difference between the actual interest rate and the contract interest rate is small, the contract interest rate can also be used to calculate and determine the interest income.
Four, at the end of the period, the balance of this account should be transferred to the "profit of this year" account, and there is no balance in this account after the carry-over.
[6] Is the interest income of financial institutions subject to income tax?
Financial institutions are also enterprises and should pay profits tax according to law. At present, the domestic enterprise income tax rate is 25%.
However, income tax is not paid according to interest income, but according to the profits made by financial institutions.
Income tax means that local governments have different definitions and proportions of personal taxable income in different periods, and sometimes they pay taxes separately according to the income from manuscript fees, wage income and accidental income (such as winning the lottery).
Income tax, also known as income tax and income tax, refers to a tax levied by the state on various incomes of legal persons, natural persons and other economic organizations in a certain period of time.
(7) Can the interest income of financial institutions be exempted from VAT?
Of course. According to the Supplementary Notice of the Ministry of Finance of State Taxation Administration of The People's Republic of China on the Value-added Tax Policy of Financial Institutions (Cai Shui [2016] No.70):
1. The interest income earned by financial institutions from the following businesses belongs to the interest income from financial interbank transactions as mentioned in Item (23) of Article 1 of the Transitional Policy Provisions on the Pilot Reform of Business Tax to VAT (Caishui [2065438+06] No.36, hereinafter referred to as the Transitional Policy Provisions):
(1) interbank deposits.
Interbank deposit refers to the exchange and deposit of funds between financial institutions, in which depositors are only financial institutions with the qualification to absorb deposits.
(2) Inter-bank loans.
Interbank lending refers to the interbank lending business given by laws and regulations to financial institutions with this business scope. The financial institutions with the business scope given by laws and regulations mentioned in this article mainly refer to financial institutions that have the business of "borrowing from financial institutions" between rural credit cooperatives and are within the business scope listed in the Business License of Financial Institutions.
(3) Inter-bank payment.
Inter-bank payment refers to the financing behavior that commercial banks (trustees) accept the entrustment of financial institutions (customers) to pay corporate customers, and customers repay the principal and interest on the agreed repayment date.
(4) Repurchase financial products by buyout.
Buying and selling financial products by buyout means that the holder of financial products (the buyback party) sells financial products such as bonds to the purchaser of bonds (the reverse repurchase party), and both parties agree that the buyback party will buy back the same amount of financial products such as bonds from the reverse repurchase party at the agreed price at a certain date in the future.
(5) Holding financial bonds.
Financial bonds refer to the securities issued by legally established financial institutions in People's Republic of China (PRC) in the national inter-bank and exchange bond markets, which repay the principal and interest as agreed.
(6) Interbank certificates of deposit.
Interbank deposit certificates refer to book-entry time deposit certificates issued by banking deposit financial institutions as legal persons in the national interbank market.
⑻ Why is the interest income from interbank transactions of financial institutions exempt from VAT?
Included in the scope of the pilot, from paying business tax to paying value-added tax.
With the approval of the State Council, starting from May, 20 16, a nationwide pilot project of changing business tax into value-added tax (hereinafter referred to as "VAT reform") will be carried out, and all business tax taxpayers in construction, real estate, finance and life service industries will be included in the pilot scope, and value-added tax will be paid instead of business tax.
All localities should attach great importance to the pilot work of camp reform, earnestly strengthen the organization and leadership of the pilot work, make careful arrangements, clarify responsibilities, take various effective measures, do a good job in the preparatory work before the pilot and the monitoring, analysis, publicity and explanation during the pilot process to ensure the smooth and orderly progress of the reform. If you have any questions, please report them to People's Republic of China (PRC) Ministry of Finance and State Taxation Administration of The People's Republic of China in time.
(8) Extended reading of interest income tax payment of financial institutions:
Requirements for exemption from VAT:
1. If a taxpayer concurrently engages in tax exemption or reduction projects, it shall separately account for the sales of tax exemption or reduction projects; If the sales volume is not accounted for separately, no tax reduction or exemption shall be allowed.
2. China people * * * and overseas units or individuals sell labor services in China and have no business offices in China, and their domestic agents are withholding agents; If there is no agent in China, the buyer shall be the withholding agent.
3, the taxpayer's sales did not reach the value-added tax threshold stipulated by the competent departments of finance and taxation in the State Council, shall be exempted from value-added tax; Those who reach the threshold shall calculate and pay value-added tax in accordance with the provisions of these regulations.
(9) Is the company's loan interest income taxable and what taxes should be paid?
Interest income from company loans should be taxed, and business tax and enterprise income tax should be paid.
First of all, for business tax.
According to the provisions of the tax law, no business tax is levied on the deposit interest income obtained by taxpayers by depositing monetary funds in banks and other financial institutions. However, taxpayers entrust funds to financial institutions to issue loans, or lend funds to other units or individuals by themselves or in other ways, and pay business tax at 5% of the interest income according to the tax items of "finance and insurance".
Followed by corporate income tax.
The interest income earned by the enterprise will directly offset the current financial expenses, affect the taxable income (increase the taxable income), and eventually lead to the increase of the current income tax (payable income tax). Therefore, interest income needs to pay enterprise income tax.
1. Interest income refers to the income obtained by an enterprise that provides funds to others for use but does not constitute equity investment, or because others occupy enterprise funds, including deposit interest, loan interest, bond interest, arrears interest and other income. Interest income, according to the date of interest payable by the debtor as agreed in the contract, confirms the realization of income.
2. The interest income recognized by enterprises (finance) in this account includes interest income realized by various loans (syndicated loans), trade financing, discount and discounted cash, agreed overdraft, credit card overdraft, refinancing and advances. ), capital transactions with other financial institutions (central banks, peers, etc.). ), as well as buying financial assets for resale.
3. On the balance sheet date, the enterprise shall debit the interest receivable determined according to the contract interest rate, credit the interest income determined according to the amortized cost and the actual interest rate, and debit or credit the loan interest adjustment and other subjects according to the difference.
If the difference between the actual interest rate and the contract interest rate is small, the contract interest rate can also be used to calculate and determine the interest income. At the end of the period, the balance of this account should be transferred to the "profit of this year" account, and there is no balance in this account after carry-over.
⑽ What interest income can be exempted from VAT?
First, the interest income of small loans for farmers in financial institutions.
20 17, 12, 1 to 20 19, 12, 3 1, and the interest income obtained by financial institutions from granting small loans to farmers, small enterprises, micro enterprises and individual industrial and commercial households shall be exempted from value-added tax.
Two, the national student loan interest income is exempt from value-added tax.
Interest income from national student loans obtained by financial institutions is exempt from VAT.
Three. Interest income from state bonds and local government bonds is exempt from value-added tax.
The interest income of national debt and local government debt obtained by taxpayers is exempt from VAT.
Four, the people's Bank of China loan interest income of financial institutions shall be exempted from value-added tax.
The People's Bank of China is exempt from value-added tax on loan interest income obtained from loans of financial institutions.
Five, housing provident fund personal housing loan interest income is exempt from value-added tax.
The interest income of individual housing loans issued by the housing provident fund management center with the housing provident fund in the designated entrusted bank shall be exempted from value-added tax according to regulations.
Six, foreign exchange loan interest income is exempt from value-added tax.
In the process of engaging in the operation of national foreign exchange reserves, foreign exchange management departments entrust financial institutions to issue interest income from foreign exchange loans, and are exempted from value-added tax according to regulations.
Seven, unified loan and unified repayment interest income shall be exempted from value-added tax.
In the unified borrowing and unified repayment business, the interest charged by the enterprise group or the core enterprises within the enterprise group and the financial companies affiliated to the group to the subordinate units within the enterprise group is not higher than the loan interest rate paid to financial institutions or the coupon rate level of bonds paid.
Eight, financial interbank interest income is exempt from value-added tax.
Interest income from financial interbank transactions exempted from VAT includes:
(1) Financial transactions between financial institutions and the People's Bank of China. Include loans from that people's bank of China to general financial institution and rediscounts from the people's bank of China to commercial banks.
(2) Inter-bank business. Capital accounting transactions between different banks and offices in the same banking system.
(3) Capital transactions between financial institutions. It refers to the short-term (including one year) unsecured financing between financial institutions that enter the national interbank lending market through the national unified interbank lending network with the approval of the People's Bank of China.
(4) Cash transfer between financial institutions.
Nine, the interest income of farmers' microfinance obtained by microfinance companies is exempt from value-added tax.
20 17, 10 to 20 19, 12, 3 18 interest income of farmers' small loans obtained by provincial financial management departments (financial offices, bureaus, etc.). ) exempt from value-added tax.