When purchasing a product,

Borrow: other monetary funds

Loans: bank deposits

When you receive interest,

Borrow: other monetary funds

Loan: interest income

According to Item (4) of Article 5 of the Provisional Regulations of the People's Republic of China on Business Tax, taxpayers engaged in the business of buying and selling foreign exchange, securities, futures and other financial commodities shall take the balance of the selling price minus the buying price as the turnover. The Ministry of Finance's Notice of People's Republic of China (PRC) and State Taxation Administration of The People's Republic of China on Some Policy Issues Concerning Business Tax (Caishui [2003] 16) once stipulated that when an enterprise buys or sells financial commodities (including stocks, bonds, foreign exchange and other financial commodities, the same below), it can calculate and pay business tax by summarizing the positive and negative differences in different tax periods at the end of the same fiscal year. If the business tax payable is less than the business tax paid this year, the wealth management products purchased by enterprises are undoubtedly financial commodities, but the wealth management products can only be "bought" but not "sold", that is, they can only earn income at maturity, similar to interest income. Therefore, the investment income obtained by enterprises from purchasing wealth management products does not belong to the business of buying and selling financial commodities, and business tax cannot be levied accordingly.

When an enterprise purchases wealth management products from a financial institution, the investment income obtained from the investment activities of the entrusted institution is not fixed income, and there may be gains and losses, which obviously does not belong to interest income and cannot be levied according to interest income.

Note: Business tax is now changed to value-added tax.