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Q：
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Do financial institutions pay VAT on the interest income obtained from granting small loans to rural households?
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A：
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By December 31, 2027, the interest income obtained by financial institutions from granting small loans to rural households is exempt from VAT.
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Q：
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How should financial institutions handle interest income from small loans eligible for tax exemption?
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A：
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Financial institutions should keep the relevant tax exemption certification materials for future reference, separately calculate the interest income of small loans that meet the tax exemption conditions, and file tax returns with the in-charge tax authorities in accordance with the current regulations; If it is not separately calculated, it shall not be exempted from VAT.
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Q：
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How to determine whether it is a farmer loan?
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A：
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The judgment of the loan to a farmer household shall be based on whether the borrower belongs to a farmer at the time of loan disbursement.
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Q：
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What is a microloan to rural households?
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A：
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Small loans issued to rural households refer to loans to rural households with a single household credit of less than 1 million (including the principal amount); There is no line of credit, refers to the single family loan contract amount and the loan balance of 1 million (including the amount) below the loan.
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Q：
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What is the policy basis for financial institutions to exempt rural households from value-added tax (VAT) loans?
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A：
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The date of issuance by the Ministry of Finance and the State Administration of Taxation is September 26, 2023. The Announcement of the Ministry of Finance and the State Administration of Taxation on Extending the Implementation of the VAT Exemption Policy on Interest Income from Loans to Rural Households of Financial Institutions (Announcement No. 67 [2023] of the Ministry of Finance and the State Administration of Taxation) will be implemented until December 31, 2027.
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FAQ
