Analysis And Suggestions On Loan To Lend Funds

(1) analysis of phenomena and causes.

Loaned loan refers to the funds that an enterprise will lend to another company after lending money from the bank.

Bank lending is conditional, that is, not any enterprise can get loans from banks.

So in China's enterprise group, there is a more common phenomenon of "loan to lend": the enterprises that have conditional loans will borrow money from the banks and then turn to the enterprises that have no conditions to borrow from the banks. Most of these two companies are affiliated companies, most of which are used by parent companies and subsidiaries, the parent company's loan subsidiaries, and the interest on their loans is not increased, the interest paid by the banks to the parent company, the interest paid by the parent company to the subsidiaries, and even the behavior that the subsidiary pays interest directly to the bank.

This phenomenon is more common in China's group companies.

(2) behavior and policy analysis.

The "loan to lend" act used by the parent company's loan subsidiaries is limited to the discussion of non capitalization funds. According to the current tax policy, both sides involve taxation.

1) the interest income of the parent company involves business tax and enterprise income tax.

According to the national tax letter, the Notice No. [1995]156 issued on the issue of business tax (1) >: a non-financial institution provides funds to the other party and charges the fund occupation fee. It should be regarded as a loan action and a business tax is levied according to the "finance and insurance industry" tax.

After obtaining the interest income, the parent company shall issue the business tax invoice and pay the business tax to the subsidiary company; at the same time, according to the enterprise income tax law, the interest income shall be incorporated into taxable income and the enterprise income tax shall be paid.

2) the interest expense of a subsidiary involves the pre tax deduction of the enterprise income tax.

The thirty-eighth provision of the regulations on the implementation of the enterprise income tax law stipulates that the interest payments from non-financial enterprises to non-financial enterprises shall not exceed the same period as that of financial enterprises.

Part of the calculated amount is allowed to be deducted.

"

The notice of the State Administration of Taxation on the pre tax deduction standard of interest expenses for related party interest of enterprises (Finance and tax [2008]121) is clear: when calculating the taxable income amount, the amount of interest paid by the enterprise to the interested party shall not exceed the proportion prescribed below, and the part calculated in accordance with the relevant provisions of the tax law and Its Implementation Regulations shall be deducted, and the excess shall not be deducted in the current and subsequent years.

It accepts the proportion of creditor's equity investment and equity investment of related party:

For 5:1; other enterprises are 2:1.

Note that the equity investment here is not based on paid in capital but on actual investment.

The second provision of fiscal and tax [2008]121 No. stipulates that the actual tax burden of an enterprise is not higher than that of the related parties in the territory, and the interest expenses actually paid to the domestic related party shall be deducted when calculating the taxable income.

It is clear that the actual tax burden of the enterprise is not higher than that of the related parties in the territory, and the interest expenses actually paid to the domestic related party will be deducted when calculating the taxable income.

In addition, the interest expense of a subsidiary must be obtained in accordance with the prescribed tax invoice before deducting the tax.

Otherwise, tax adjustments should be made.

3) the deduction of interest on loan is also related to whether investment is in place.

The reply issued by the State Administration of Taxation on the interest expenses incurred before enterprises' investments are not in place ([2009]312) stipulates that if the enterprise investors fail to pay their capital within the prescribed time limit, the interest generated by the foreign loans of the enterprise is equivalent to the interest paid on the difference between the actual paid capital of the investor and the amount of capital payable within the prescribed time limit. It does not belong to the reasonable expenses of the enterprise. It should be borne by the investors of the enterprise and not be deducted when calculating the taxable income of the enterprise.

That is to say, if an enterprise that has not paid enough capital has a loan, the loan interest that is equivalent to the amount of the unpaid capital amount can not be deducted before tax.

The rest of the loan interest can be deducted under the relevant conditions.

The formula is:

The interest rate of an enterprise which is not deductible during each calculation period is the amount of interest borrowed during the period, the amount of the registered capital that is not paid during the period and the amount borrowed during that period.

(3) processing recommendations.

In connection with the lending and lending funds of affiliated enterprises, we propose the following:

1) a bank loan can be entrusted to the parent company to entrust the bank to the subsidiary.

This procedure is cumbersome, but the procedure is clear, without the "blur zone" of the tax law, and it can also avoid the related tax risks.

2) if the parent company makes loans to the bank, if part of the loan is pferred to the subsidiary company, the interest shall be paid by the parent company to the bank uniformly, and the subsidiary shall pay the interest to the parent company on the basis of the loan agreement between the two parties, so it is not necessary to issue the tax to the tax bureau.

In this way, when the parent company is engaged in the "loan to lend" business, it can solve the trouble of issuing invoices by the subsidiary through "retaining some loans".