The implementation of the VAT exemption policy for interest income from loans of small and micro enterprises of financial institutions
Problem description: Can the interest income obtained by financial institutions from loans to small and micro business owners and other natural persons be subject to the VAT exemption policy for small and micro enterprise loans?
Response: In accordance with the announcement of the Ministry of Finance and the State Administration of Taxation on tax policies related to supporting the financing of small and micro enterprises (No. 13 of 2023, hereinafter referred to as Announcement No. 13) and the announcement of the Ministry of Finance and the State Administration of Taxation on the VAT exemption policy for interest income from loans of small and micro enterprises of financial institutions (No. 16 of 2023, hereinafter referred to as Announcement No. 16) and other documents, financial institutions provide financial institutions to small enterprises, micro enterprises and individual industrial and commercial households (hereinafter referred to as small and micro enterprises) Interest income obtained from the granting of micro-loans may be exempted from value-added tax in accordance with regulations.
The interest income obtained by financial institutions from granting small loans to small and micro business owners and other natural persons shall not be exempted from VAT in accordance with the relevant provisions of Announcement No. 13, Announcement No. 16 and other documents.
VAT 580
Small and micro enterprises 38
Finance and Taxation 266
Tax Return 275
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