Analysis And Suggestions On Loan To Lend Funds

< p > (1) phenomenon and reason analysis.

< a href= "http://www.91se91.com/news/index_c.asp" > lent loan fund < /a > refers to the funds that an enterprise has borrowed from the bank and then lend it to another enterprise.

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

So in China's business groups, there is a more common phenomenon of "lending and lending": enterprises that have conditional loans have to lend money from banks and then give them to enterprises that have no conditions to borrow from banks. Most of these two companies are affiliated companies, most of which are used by parent companies and subsidiaries -- parent subsidiary loan companies, and they do not raise interest on loans, the interest paid by banks to the parent company, the interest rate of the parent company to the subsidiary companies, and even the subsidiary's direct payment to banks "a href=" http:// www.91se91.com/news/index_c.asp > interest less than /a ".

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

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< p > (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.

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< p > 1) the interest income of the parent company is less than a href= "http://www.91se91.com/news/index_c.asp" > business tax < /a > 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.

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< p > 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 expenses paid by non-financial enterprises to non-financial enterprises shall not be deducted from the amount calculated according to the same loan interest rate of the same period of financial enterprises.

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< p > > the notice of the Ministry of Finance on the issue of tax policy concerning the pre tax deduction standard for interest expenses of related party interest parties of the Ministry of Finance ([2008]121) clearly states that when calculating the taxable income amount, the actual interest paid by the enterprise to the interested party shall not exceed the proportion stipulated in the prescribed tax rate and the relevant provisions of the tax law and its implementing regulations, and shall be deducted. 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: financial enterprise is 5:1; other enterprises are 2:1.

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< p > note that the equity investment here is not based on paid in capital but on actual investment.

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< p > fiscal and taxation [2008]121 No. second stipulates 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 related parties in the territory are allowed to 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.

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< p > besides, the interest expense of a subsidiary must also be obtained in accordance with the prescribed tax invoice before deducting the tax.

Otherwise, tax adjustments should be made.

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< p > 3) 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.

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< p > 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.

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

The formula is: < /p >

< p > borrowing interest for every calculation period of an enterprise = the amount of interest borrowed during that period * the amount of registered capital that has not been paid during the period, and the amount of borrowing during the period is less than /p.

< p > (3) handling suggestions.

In view of the problem of loan lending by related enterprises, we propose the following: < /p >

< p > 1 can be commissioned by bank lending, the parent company entrusted the bank loan 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.

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< p > 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 paid 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".

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