Caishui No.201636: Services provided by units or individual industrial and commercial households to other units or individuals for free shall be regarded as sales services and shall be subject to value-added tax (except public welfare undertakings or the public).
Similarly, when an enterprise provides loans to non-enterprise employees free of charge, it also needs to treat them as sales loan services, and confirm interest income, income tax interest income and value-added tax according to the similar loan interest rate of financial institutions in the same period.
Therefore, enterprises must consider tax-related risks when granting free loans to non-enterprise employees.
When a company lends money to an individual, it may be suspected of withdrawing capital or transferring assets in law, and it may be recognized as having relevant income without paying taxes in taxation.
Legal risk of company lending to individuals: it will be suspected of withdrawing investment or transferring assets; Tax risk of corporate loans to individuals: it will be taxed by the tax bureau. In terms of value-added tax, the following situations are regarded as sales services, intangible assets or real estate: units or individual industrial and commercial households provide services to other units or individuals free of charge, except public welfare undertakings or the public. Units or individuals transfer intangible assets or real estate to other units or individuals free of charge. However, if it is used for public welfare, it is still for the public. In other circumstances stipulated by the Ministry of Finance of People's Republic of China (PRC) and State Taxation Administration of The People's Republic of China, the value-added tax provided by the company to individuals free of charge (unless there are special provisions) shall be regarded as sales. Private lending generally has personal and social attributes, and under special circumstances, it also has certain capital attributes, which taxes the large interest income of private lending. We should adhere to the principle of tax fairness and maintain moderation. The tax authorities should comprehensively judge whether they meet the statutory tax payment conditions, and measure the administrative efficiency and economic efficiency of tax revenue in combination with the relationship between borrowers and borrowers, the nature and purpose of loans, the amount and interest of loans, and the source of loans, so as to give full play to the function of the tax system in regulating social production, exchange, distribution and consumption and promoting the healthy development of social economy. For people whose monthly interest income does not reach the threshold occasionally between relatives and friends,
Can the company borrow money from the company?
It is legal for a company to borrow money from it. When a company faces an unfavorable cash flow or other financial crisis, it can borrow money from other companies. Generally speaking, mutual lending between citizens and enterprises belongs to private lending and is permitted by law. As long as the meaning of both sides is true, it can be considered effective.
Provisions of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trial of Private Lending Cases
Article 10 The people's court shall support the private lending contracts concluded between legal persons, unincorporated organizations and legal persons and unincorporated organizations for the needs of production and operation, if the parties claim that the private lending contracts are valid, except for the cases stipulated in Articles 146, 153 and 154 of the General Principles of the Civil Law and Article 13 of these Provisions.
Article 11 A legal person or an unincorporated organization raises funds from employees in the form of loans for the production and operation of its own unit, and there are no circumstances stipulated in Articles 144, 146, 153 and 154 of the General Principles of the Civil Law and Article 13 of these Provisions. If the parties claim that the private loan contract is valid, the people's court shall support it.