Is there tax-related risk in the company's "free loans" to natural person shareholders and "free loans" to "company employees"? How to avoid it? Now my tax accountant firm will give you a detailed answer, hoping to help you to reasonably avoid possible tax risks.

I. The Company borrowings free of charge to "natural person shareholders"

1.Policy basis

According to the Ministry of Finance Notice of the State Administration of Taxation on Standardizing the Administration of Individual Income Tax Collection for Individual Investors(Finance and taxation[2003]158No.)Article 2 stipulates: The enterprise from which the individual investor invests during the tax year(The sole proprietorship and partnership are excluded)Where the loan is neither returned nor used for the production and operation of the enterprise after the end of the tax year, the unreturned loan may be regarded as the dividend distribution of the enterprise to individual investors, and individual income tax shall be calculated and levied in accordance with the items of "income from interest, dividends and bonuses".

2.Policy analysis

Through the analysis of the above policies, the natural shareholders of enterprises borrow money from enterprises(Or withdraw funds)After the end of the tax year(That is, after the end of the year or the liquidation of the company)Neither returned nor used for enterprise production and operation(Such as: imprest fund, purchase fund, etc)Individual income tax will be calculated and levied in accordance with "income from interest, dividends and bonuses".

That is to say, in many cases, the amount of money withdrawn by natural person shareholders or borrowed from the company is large, and it is not necessarily used for the production and operation of the enterprise. In this case, if it is not treated and not returned after the end of the tax year, it is very likely that the tax authorities will calculate and levy individual income tax according to the items of "interest, dividend and bonus income".

Our tax agent firm suggests that we need to deal with and plan so that there will be no tax risk.

2. The Company lends money to "employees" for free.

1.Policy basis

According to the Ministry of Finance Reply of the State Administration of Taxation on the Issue of Individual Income Tax Levied by Enterprises for Individuals' Purchase of Houses or Other Property(Finance and taxation[2008]83No.)Article provisions: Enterprise investors, investor family members or other enterprise personnel borrowed money from the enterprise for the purchase of houses and other property, registered ownership as investors, investor family members or other enterprise personnel, and did not return the loan after the end of the borrowing year. Individual income tax shall be calculated and levied on the items of "income from wages and salaries".

2.Policy analysis

Through the analysis of the above policies, enterprise employees borrow money from the company to buy personal property. If the loan is not returned after the end of the year, individual income tax will be levied according to the "wage and salary income" project.

Of course, if the employee's loan belongs to the temporary reserve fund, travel expenses and so on, there is no risk of tax.

Therefore, my tax accountant advised the enterprise staff to borrow money from the enterprise, the use of the loan is very critical. Must be related to production and operation of the loan, there will be no tax risk.

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