It is common for affiliated enterprises to lend to each other in their business activities. However, in order to prevent the transfer of corporate profits through fund lending by affiliated enterprises, capital weakening will be caused. Therefore, in the interest expense deduction, the tax law has made relevant provisions to prevent the above phenomenon.
It is common for affiliated enterprises to lend to each other in their business activities. However, in order to prevent the transfer of corporate profits through fund lending by affiliated enterprises, capital weakening will be caused. Therefore, in the interest expense deduction, the tax law has made relevant provisions to prevent the above phenomenon.

According to finance and taxation2018】121Article 1: When calculating the amount of taxable income, the interest payment actually paid by an enterprise to a related party shall not exceed the proportion specified below and the part calculated in the relevant provisions of the Tax Law and its implementation regulations. The excess part shall not be deducted in the current period or in subsequent years. For the interest expenses actually paid by the enterprise to the affiliated party, except as stipulated in Article 2 of this Notice, the proportion between the creditor's investment and the equity investment accepted by the affiliated party is: (1) Financial enterprise, is5:1; (2) Other enterprises, for2:1.

Case: A newly established manufacturing enterprise (resident enterprise) 2019 years 1 month 1 Day, for production and management to borrow from related parties 1 Operating funds for a period of time 600 RMB 10,000 yuan, interest expense of related loans 90 Ten thousand yuan, the related party's equity investment in the enterprise is 200 Ten thousand yuan, the annual interest rate of similar loans in the same period is 7% , what is the amount of interest expense subject to tax adjustment when the enterprise calculates the taxable income in the current year?

Analysis:

The first step is that loans between other enterprises need to conform to the debt-to-equity ratio2:1Is the total amount of loans =200 × 2=400 (ten thousand yuan)

The second step, the loan interest rate should be in line with the bank similar loan interest rate level, then the interest expense =400 × 7%=28 (ten thousand yuan)

Third, the tax law stipulates that the deductible interest expense is28Ten thousand yuan, and the actual interest expense paid by the enterprise is90Ten thousand, more than the specified standard =90-28=62 (ten thousand yuan), it is necessary to adjust the tax payment and increase the taxable income at the time of the final settlement of the enterprise income tax 62 Ten thousand yuan.

Huanze warm reminder: the deduction of interest expense of affiliated enterprises needs to be judged from two aspects:

(1) Judging the rationality of the total amount of loans from the perspective of capital structure.

(2) Through the reasonable interest rate standard to determine whether the interest that does not exceed the debt ratio meets the reasonable level, so that the interest rate level meets the reasonable level.

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