定了！增值税贷款利息及相关费用不得抵税

Core Viewpoint - The recent draft regulation from the Ministry of Finance and the State Taxation Administration indicates that interest on loans and related fees will not be deductible from value-added tax (VAT), maintaining the current tax treatment and suggesting that reforms in this area are unlikely in the short term [3][5][6]. Summary by Sections VAT Law Implementation - The draft regulation explicitly states that taxpayers cannot deduct input VAT on loan services and related fees, which includes financing advisory fees, handling fees, and consulting fees [3][5]. - This aligns with existing regulations, where input VAT on loan services has not been deductible [6]. Financial Impact - VAT is the largest tax category in China, projected to generate approximately 6.57 trillion yuan in 2024, accounting for 38% of total tax revenue [3]. - Allowing deductions for loan-related expenses could significantly reduce corporate financing costs and improve capital allocation efficiency [6]. Global Comparison - Different countries have varying policies regarding the deductibility of input VAT on loan services; for instance, Germany allows it, while Australia and Japan do not [7]. - The rationale for not allowing such deductions in China is that loan services are viewed more as final consumption rather than inputs for production [7]. Future Considerations - Experts suggest that while theoretically, input VAT on loan services should be deductible, current fiscal constraints and the potential loss of revenue (estimated in the thousands of billions) make such reforms unlikely in the near term [7].