Loan interest and input tax directly related to the loan cannot be deducted.
The Provisions on Relevant Matters Concerning the Pilot Project of Changing Business Tax to Value-added Tax clearly stipulates that the input tax amount of investment and financing consulting fees, handling fees and consulting fees directly related to loans paid by taxpayers to lenders by accepting loan services shall not be deducted from the output tax amount.
Annex 1: Implementation Measures for the Pilot Project of Changing Business Tax to Value-added Tax stipulates: Article 27 The input tax of the following items shall not be deducted from the output tax: (6) purchased passenger services, loan services, catering services, daily services of residents and entertainment services.
Expenditure on loan service: According to the annotation of "Loan Service", accepting loan service refers to the service of lending funds to others to obtain interest income, including all kinds of expenses obtained from occupying and borrowing funds, including interest expenses (guaranteed income, remuneration, capital occupation fee, compensation, etc.). ) During the holding period of wealth management products (including expiration), the interest expense of credit card overdraft, the interest expense of buying and selling wealth management products, and the interest expense charged by margin financing and securities lending. As well as the interest and interest-related expenses obtained from financing, sale and leaseback, bill negotiation, penalty interest, bill discount, lending and other businesses, as well as the expenses of accepting fixed profits or guaranteed profits paid by monetary funds.
Among them, financing sale and leaseback refers to the business activities that the lessee sells assets to enterprises engaged in financing sale and leaseback for the purpose of financing, and the enterprises engaged in financing sale and leaseback lease assets to the lessee.
Why is the loan interest not allowed to be deducted from the input?
Because the design concept of value-added tax is to pay value-added tax in the previous link, at present, value-added tax is not calculated for deposit interest income, and the value-added tax generated by loan interest expenditure is not allowed to be deducted.
According to the Interim Measures for Special Additional Deduction of Individual Income Tax, if taxpayers or their spouses use individual housing loans from commercial banks or housing accumulation funds alone or jointly to buy houses for themselves or their spouses in China, the interest expenses incurred on the first housing loan will be deducted according to the standard of 1 000 yuan per month in the actual loan interest year, and the maximum deduction period will not exceed 240 months. The first housing loan refers to the housing loan that enjoys the interest rate of the first housing loan when buying a house. Taxpayers can only enjoy a first home loan interest deduction.
legal ground
Interim Measures for Special Additional Deduction of Individual Income Tax
Article 14 If taxpayers or their spouses use individual housing loans from commercial banks or housing accumulation funds alone or jointly to buy houses for themselves or their spouses in China, the interest expenses incurred from the first housing loan shall be deducted according to the standard quota of RMB 1 000 per month in the year when the loan interest actually occurred, and the maximum deduction period shall not exceed 240 months. Taxpayers can only enjoy a first home loan interest deduction. The term "first home loan" as mentioned in these Measures refers to the housing loan that enjoys the interest rate of the first home loan when buying a house. Fifteenth agreed by both husband and wife, can choose to be deducted by one of them, the specific method of deduction shall not be changed within a tax year. For the first set of housing loans that occur when the husband and wife buy houses separately before marriage, they can choose to buy 1 house after marriage, and the buyer will deduct it according to the deduction standard of 100%, or the husband and wife will deduct it according to the deduction standard of 50%, and the specific deduction method cannot be changed within one tax year. Article 16 Taxpayers should keep the housing loan contract and repayment expenditure vouchers for future reference.
What are the tax deduction conditions for loan interest?
Legal analysis: the standard for deducting personal income tax from mortgage interest is 1000 yuan per month, and the longest deduction period is no more than 240 months. Those who can enjoy the deduction can choose to be deducted by one of them according to the agreement of both husband and wife. Keep a tax year unchanged after confirmation.
Pre-tax deduction conditions of mortgage interest: I or my spouse use the personal housing loan or housing accumulation fund of commercial banks alone or jointly to purchase housing for me or my spouse in China, and the interest expenses incurred in the first housing loan.
Note: If you are not sure whether your housing loan interest expense is in line with the policy, you can consult the loan contract (agreement) or consult the bank or housing provident fund center that handles the loan. When you are actually operating, pay attention to whether your loan repayment is based on the interest rate of the first suite.
When applying for pre-tax deduction of mortgage interest, taxpayers can submit information to the tax authorities by themselves or by withholding agents (such as unit accountants). The materials to be submitted include the personal identity information of the taxpayer himself, his spouse, minor children, and the dependent elderly, as well as other information related to the deduction of mortgage interest stipulated by the State Council tax authorities.
Housing and urban-rural construction departments assist in verifying the repayment expenditure information of housing provident fund loans of housing provident fund management institutions, natural resources departments assist in verifying real estate registration information, People's Bank of China and financial supervision and management departments verify the repayment expenditure information of housing commercial loans, and public security departments verify identity information.
Legal basis: Article 2 of the Individual Income Tax Law of People's Republic of China (PRC), the following personal income shall be subject to individual income tax:
(1) Income from wages and salaries;
(2) Income from remuneration for labor services;
(3) Income from remuneration;
(4) Income from royalties;
(5) Operating income;
(6) Income from interest, dividends and bonuses;
(7) Income from property lease;
(8) Income from property transfer;
(9) Accidental income.
Individual residents who obtain income from items 1 to 4 of the preceding paragraph (hereinafter referred to as comprehensive income) shall calculate individual income tax according to the tax year; Non-resident individuals who obtain income from items 1 to 4 of the preceding paragraph shall calculate individual income tax on a monthly or itemized basis. Taxpayers who obtain income from items 5 to 9 of the preceding paragraph shall calculate individual income tax separately in accordance with the provisions of this law.
The house loan was paid off two years in advance. Can I deduct personal income tax by paying interest?
1. After the loan is paid off in advance, the tax cannot be deducted. Only the housing loan can be deducted from the tax, and the first home loan still needs to be paid back. When the user applies to pay off the loan in advance, then the loan does not need to be repaid in that year, and the tax deduction period needs to be revised. The mortgage that has been paid off after modification cannot be used to deduct a tax.
2. If it is not paid off in advance, it shall be deducted according to the standard amount of 1 000 yuan per month, and the longest deduction time shall not exceed 240 months.
Extended data:
Can mortgage be deducted from personal income tax?
This is possible.
The Interim Measures for Special Additional Deductions of Personal Income Tax, which was implemented on June 20 19, 65438+ 10/9, added six special additional deductions, including children's education, continuing education, housing loan interest, housing rent, support for the elderly and medical treatment for serious illness. Although mortgage interest expenses are also included, whether you can enjoy the pre-tax deduction of loan interest needs to meet multiple conditions set by the Measures.
1, identification standard: it must be the interest expense of the first home loan, including commercial loans and provident fund loans. If it is a second suite, you can't enjoy it;
2. Deduction period: the deduction time shall be calculated from the month of repayment agreed in the loan contract to the month when the loan is fully paid off or the loan contract is terminated, with a maximum of 240 months.
3. Deduction standard: RMB 1 1,000 per month, which can be deducted according to the proportion of the main lender 1 1,000%, or half of the deduction can be made by both husband and wife, and each person can deduct 50%.
Can VAT deduct interest? Can VAT deduct interest?
The loan interest cannot be deducted from the value-added tax.
The Provisions on Relevant Matters in the Pilot Project of Changing Business Tax to Value-added Tax stipulates that the investment and financing consulting fees, handling fees and consulting fees directly related to loans paid by taxpayers to lenders by accepting loan services shall not be deducted from the output tax.
The Measures for the Pilot Implementation of Changing Business Tax to VAT also clearly stipulates that the input tax of the following items shall not be deducted from the output tax: purchased passenger services, loan services, catering services, residents' daily services and entertainment services.