According to the Enterprise Income Tax Law and its implementing regulations, reasonable expenses actually incurred by enterprises, including costs, expenses, taxes, losses and other expenses, are allowed to be deducted when calculating taxable income. Related expenditure refers to expenditure directly related to income. Reasonable expenditure refers to the necessary and normal expenditure that conforms to the routine of production and business activities and should be included in the current profit and loss or the cost of related assets. The expenses incurred by the enterprise that meet the above requirements shall be deducted before tax with legal and valid vouchers.
Factoring is a non-CBRC business with no interest, only prepaid accounts payable expenses.