国务院暂不允许贷款利息抵税

Core Viewpoint - The recent implementation of the VAT law in China has confirmed that interest expenses on loans and related fees cannot be deducted from VAT, although the use of the term "temporarily" suggests potential future changes in this policy [3][5][6]. Group 1: VAT Law Implementation - The new VAT law specifies that taxpayers cannot deduct interest expenses on loans and related fees from their VAT payable [3]. - The inclusion of the word "temporarily" in the final regulation indicates that the government may reassess this policy in the future [3][5]. - The VAT system in China generates over 6 trillion yuan annually, covering all goods and services [3]. Group 2: Impact on Businesses - The inability to deduct loan interest increases the cost of borrowing for businesses and disrupts the VAT deduction chain, leading to a situation of double taxation [4][5]. - The current VAT system creates an uneven tax burden across different industries due to varying loan demands [5]. - Businesses had hoped for the inclusion of loan interest in the VAT deduction list, but the final regulation dashed these expectations [5]. Group 3: Future Considerations - Experts suggest that the government may explore options to allow deductions for loan interest in the future, depending on the evaluation of the current policy's impact [6][7]. - A gradual approach to reforming the VAT deduction for loan interest is recommended, potentially starting with key industries [7]. - The government has the flexibility to amend the VAT law implementation regulations without needing to revise the law itself, allowing for timely reforms [7].