Is it legal for companies to lend funds to individuals for financial management?

What procedures are required?

1. It is against the corporate financial system for a company to lend funds to individuals for financial management.

The individual should be required to return the company's funds immediately; 2. How to record the interest collected by the company and pay taxes: (1) The interest income received should be offset against financial expenses, (2) Business tax should be accrued and paid according to the business tax items of the financial and insurance industry

and additional.

Policy basis: Non-financial institutions provide funds to each other and charge capital occupancy fees. For example, enterprises borrow working capital from one another and charge capital occupancy fees. Administrative agencies or corporate authorities charge funds when they provide funds to their affiliated units or enterprises.

Occupation fees, Rural Cooperative Foundation provides funds to farmers and charges fund occupation fees, etc. According to the "Business Tax Item Notes" regulations, loans fall within the taxation scope of the "Financial and Insurance Industry" tax items, and loans refer to lending funds to others for use.

Behavior.

According to this regulation, any act of lending funds to others, regardless of whether it is a financial institution or other unit, shall be regarded as a loan act and business tax shall be levied according to the "financial and insurance industry" tax category.