The overdue interest is actually the interest of the loan, which is included in the financial expenses. As long as the interest payment meets the requirements, it can be deducted before tax. Notice of State Taxation Administration of The People's Republic of China, Ministry of Finance on Promoting the Pilot Project of Changing Business Tax to Value-added Tax (Caishui [2016] No.36): Article 15 VAT rate: (1) Taxpayers who have taxable behavior shall be taxed at a rate of 6%, except as provided in items (2), (3) and (4) of this article.