2. How to pay VAT on affiliated enterprise loans?
1. Respond positively that the controlling shareholder, actual controller, directors, supervisors and senior management personnel of the company shall not use their relationship to harm the interests of the company. Anyone who violates the provisions of the preceding paragraph and causes losses to the company shall be liable for compensation. Related party transactions refer to the transactions between the company or its subsidiaries and related parties who directly or indirectly hold interests and have interests in the company. Related parties include natural persons and legal persons, mainly including promoters, major shareholders, directors, supervisors, senior managers and their families of listed companies and companies controlled by the above parties. Second, the most common business analysis between affiliated enterprises is the borrowing and occupation of funds between affiliated enterprises. Some enterprises have relatively standardized practices and will agree on interest and invoices, but in more cases, they will not charge interest and capital occupation fees. 3. How to pay the value-added tax on affiliated enterprise loans? 1. The affiliated enterprises pay interest at the market rate. Pay value-added tax according to the loan service tax rate of 6%; 2. Free loans or no agreed interest between affiliated enterprises. If an affiliated enterprise borrows money for free or does not agree on interest, it does not conform to the principle of independent transaction and belongs to the situation of regarded sales.
3. Is VAT levied on loan interest between affiliated enterprises?
No matter financial institutions or other units, as long as they lend funds to others, they should be regarded as lending activities and pay value-added tax according to lending services. In case of the following business transactions between taxpayers and their affiliated enterprises, the tax authorities may adjust their tax payable: the interest paid or charged by financing funds exceeds or is lower than the amount that can be agreed between unrelated enterprises, or the interest rate exceeds or is lower than the normal interest rate of similar businesses;
Therefore, for the capital occupation or loan between affiliated enterprises, the lender needs to calculate the interest income of the borrower and pay VAT according to the interest rate of similar loans in the same period.
4. Does the enterprise loan interest income need to pay VAT?
According to the business tax law that pays 8% of interest income, it is stipulated that "the interest expense of borrowing from non-financial institutions shall be deducted according to the amount not higher than the loan interest rate of similar financial institutions in the same period". The borrowing rate mentioned here refers to the benchmark interest rate announced by the People's Bank of China. However, from the perspective of the General Principles of Civil Law, it is protected by law that the lending rate between enterprises does not exceed 30% of the loan interest rate in the same period (that is, it rises by 30%). Therefore, I think the benchmark interest rate stipulated in the tax law can be included in the enterprise income tax, and the excess (floating 30 parts) can be included in the enterprise free funds or adjusted for tax payment.