What is after-tax interest expense?

After-tax interest expense is the balance of interest expense minus income tax.

After-tax interest expense = interest tax. After-tax interest expense is 20% after-tax interest paid by individuals after deducting interest income from deposit interest income.

Interest expense is the interest paid to creditors after you borrow money. Interest expense is the capital cost for enterprises to borrow from banks and other external units. The calculation method is to multiply the total loan amount by the loan interest rate. In the income statement, it is reflected in the financial expenses. But the interest expense is not completely equal to the financial expense. Financial expenses include some handling fees. And deposit interest income.

Extended data:

Personal income tax is the general name of legal norms that adjust the social relationship between tax authorities and natural persons (residents and non-residents) in the process of personal income tax collection and management.

Tax target:

1, legal object

Taxpayers of personal income tax in China are those who live in China and those who do not live in China, including citizens in China, foreigners who get income from China and compatriots from Hong Kong, Macao and Taiwan.

2. Resident taxpayers

Individuals who have a domicile in China or have no domicile in China for 1 year are resident taxpayers, and should bear unlimited tax obligations, that is, they should pay individual income tax according to law on their income obtained in China and abroad.

3. non-resident taxpayer

Individuals who have neither domicile nor residence in China, or who have lived in China for less than one year, are non-resident taxpayer, bear limited tax obligations, and pay personal income tax according to law only on their income obtained from China.

Personal income tax has three different tax rates according to different tax items:

1. Comprehensive income (income from wages and salaries, income from labor remuneration, and income from royalties) shall be taxed at an excessive progressive tax rate of 7 levels, and the taxable income shall be calculated on a monthly basis. The tax rate is divided into seven grades according to the taxable income of individual monthly wages and salaries, with the highest grade being 45% and the lowest grade being 3%.

2. Operating income is subject to a 5-level excess progressive tax rate. The income from production and operation of individual industrial and commercial households and the annual taxable income from contracted operation and lease operation of enterprises and institutions, which are subject to annual calculation and monthly prepayment of taxes, are divided into five levels, with the lowest level being 5% and the highest level being 35%.

3. Proportional tax rate. Personal income tax is levied on personal income such as interest, dividends, bonus income, property lease income, property transfer income, accidental income and other income, and the proportional tax rate of 20% is applicable.