How long does it take for shareholders to repay corporate loans?

Legal analysis: If a shareholder borrows money from the company for less than one year and fails to return it after the tax year ends and it is not used for the production and operation of the enterprise, the unpaid loan can be regarded as dividends distributed by the enterprise to individual investors, and personal income tax should be levied according to the items of "interest, dividends and dividend income".

Legal basis: Civil Code of People's Republic of China (PRC).

Article 667 A loan contract is a contract in which the borrower borrows money from the lender, repays the loan at maturity and pays interest.

Article 668 A loan contract shall be in written form, unless otherwise agreed between natural persons. The contents of a loan contract generally include terms such as loan type, currency, purpose, amount, interest rate, term and repayment method.

Article 669 When concluding a loan contract, the borrower shall, at the request of the lender, provide the true information about the business activities and financial status related to the loan.