We all know that cash flow is the lifeblood of a company. If cash is insufficient, the company needs to finance loans, and loans will generate interest on loans. According to the different loan object, generally can be divided into financial company loan, general enterprise loan, personal loan. Today we mainly introduce different regions, in the calculation of taxes, for personal loan interest expenditure of different treatment.

For example, we all know that if a domestic enterprise borrowings money from individuals who are not shareholders, the part of the interest on loan incurred by the enterprise that does not exceed the amount calculated according to the interest rate of the same kind of loan to the financial enterprise during the same period is allowed to be deducted in accordance with Article 8 of the Tax Law and Article 27 of the Regulations on the Implementation of the Tax Law.

However, when a Hong Kong company is audited in Hong Kong, if the interest of the loan incurred by the Hong Kong company from the non-shareholders occurs, such interest payments cannot be deducted from the profits tax when calculating the profits tax of the Hong Kong company, so the tax adjustment shall be made.

Therefore, we need to pay attention to the differences in tax system in different regions when operating the company.

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