{"id":999971484,"date":"2025-03-28T13:41:24","date_gmt":"2025-03-28T06:41:24","guid":{"rendered":"https:\/\/bizzi.vn\/?p=999971484"},"modified":"2026-06-09T13:50:53","modified_gmt":"2026-06-09T06:50:53","slug":"loan-repayment","status":"publish","type":"post","link":"https:\/\/bizzi.vn\/en\/loan-repayment\/","title":{"rendered":"What is interest expense? How to calculate international standard interest expense and tax regulations 2025"},"content":{"rendered":"<p class=\"ng-star-inserted\"><strong class=\"ng-star-inserted\"><span class=\"ng-star-inserted\">Interest expense<\/span><\/strong><span class=\"ng-star-inserted\">\u00a0is a major item that every business that uses borrowed capital must face. It is not only the payment for the use of capital but also a tool\u00a0<\/span><strong class=\"ng-star-inserted\"><span class=\"ng-star-inserted\">financial leverage<\/span><\/strong><span class=\"ng-star-inserted\">\u00a0has a strong impact on profits and overall financial health. In the context of increasingly strict tax regulations, mastering the nature, accounting methods and management strategies\u00a0<\/span><strong class=\"ng-star-inserted\"><span class=\"ng-star-inserted\">interest expense<\/span><\/strong><span class=\"ng-star-inserted\">\u00a0is a mandatory requirement to ensure legal compliance and optimize operational efficiency.<\/span><\/p>\n<p>In this article, <a href=\"https:\/\/bizzi.vn\/\"><b>Bizzi<\/b> <\/a>will help you understand <b>What is interest expense?<\/b>, recording principles and detailed accounting methods according to Vietnamese accounting standards. Let&#039;s find out to ensure your business operates in accordance with regulations and optimize costs!<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_80 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Index<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewbox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewbox=\"0 0 24 24\" version=\"1.2\" baseprofile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/bizzi.vn\/en\/loan-repayment\/#1_Tong_quan_ve_chi_phi_lai_vay\" >1. Overview of interest costs<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/bizzi.vn\/en\/loan-repayment\/#11_Chi_phi_lai_vay_la_gi\" >1.1 What is interest expense?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/bizzi.vn\/en\/loan-repayment\/#12_Ban_chat_va_dac_diem_cot_loi_cua_chi_phi_lai_vay\" >1.2 The nature and core characteristics of interest expenses<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/bizzi.vn\/en\/loan-repayment\/#13_Cac_loai_chi_phi_lai_vay\" >1.3 Types of interest expenses<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/bizzi.vn\/en\/loan-repayment\/#2_Tac_dong_cua_chi_phi_lai_vay_doi_voi_doanh_nghiep\" >2. Impact of interest costs on businesses<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/bizzi.vn\/en\/loan-repayment\/#3_Quy_dinh_phap_luat_ve_chi_phi_lai_vay_2025\" >3. Legal regulations on interest expenses 2025<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/bizzi.vn\/en\/loan-repayment\/#31_Chi_phi_lai_vay_trong_giao_dich_lien_ket\" >3.1 Interest expense in related party transactions<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/bizzi.vn\/en\/loan-repayment\/#32_Chi_phi_lai_vay_khi_quyet_toan_thue_TNDN\" >3.2 Interest expense when settling corporate income tax<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/bizzi.vn\/en\/loan-repayment\/#4_Cong_thuc_tinh_chi_phi_lai_vay\" >4. Formula for calculating interest costs<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/bizzi.vn\/en\/loan-repayment\/#41_Tinh_chi_phi_lai_vay_ngan_hang\" >4.1 Calculating bank interest costs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/bizzi.vn\/en\/loan-repayment\/#42_Tinh_chi_phi_lai_vay_ca_nhan_doanh_nghiep_to_chuc_khac\" >4.2 Calculating interest costs for individuals, businesses, and other organizations<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/bizzi.vn\/en\/loan-repayment\/#5_Cach_hach_toan_chi_phi_lai_vay\" >5. How to account for interest expenses<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/bizzi.vn\/en\/loan-repayment\/#51_Chi_phi_chi_phi_lai_vay\" >5.1 Interest expense<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/bizzi.vn\/en\/loan-repayment\/#52_Von_hoa_chi_phi_lai_vay\" >5.2 Capitalization of interest expenses<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/bizzi.vn\/en\/loan-repayment\/#53_Xu_ly_chi_phi_lai_vay_khong_duoc_tru\" >5.3. Handling of non-deductible interest expenses<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/bizzi.vn\/en\/loan-repayment\/#6_Cach_xu_ly_cac_khoan_chi_phi_lai_vay_khong_hop_ly\" >6. How to handle unreasonable interest expenses<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/bizzi.vn\/en\/loan-repayment\/#61_Tieu_chi_xac_dinh_chi_phi_lai_vay_khong_hop_ly\" >6.1. Criteria for determining unreasonable interest expenses<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/bizzi.vn\/en\/loan-repayment\/#62_Cach_hach_toan_chi_phi_lai_vay_khong_hop_ly\" >6.2. Unreasonable way of accounting for interest expenses<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/bizzi.vn\/en\/loan-repayment\/#63_Ke_khai_va_dieu_chinh_tren_to_khai_quyet_toan_thue_TNDN\" >6.3. Declaration and adjustment on corporate income tax finalization declaration<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/bizzi.vn\/en\/loan-repayment\/#64_Giai_phap_han_che_phat_sinh_chi_phi_lai_vay_khong_hop_ly\" >6.4. Solutions to limit the occurrence of unreasonable interest costs<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/bizzi.vn\/en\/loan-repayment\/#7_Cac_khoan_chi_phi_lai_vay_duoc_tru_khi_tinh_thue_TNDN\" >7. Interest expenses are deductible when calculating corporate income tax.<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/bizzi.vn\/en\/loan-repayment\/#71_Lai_vay_tu_ca_nhan_khong_vuot_qua_150_lai_suat_co_ban_cua_Ngan_hang_Nha_nuoc_Viet_Nam\" >7.1. Interest on loans from individuals shall not exceed 150% base interest rate of the State Bank of Vietnam.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/bizzi.vn\/en\/loan-repayment\/#72_Lai_vay_tuong_ung_voi_phan_von_dieu_le_da_gop_du\" >7.2. Interest on loans corresponding to the fully contributed charter capital<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/bizzi.vn\/en\/loan-repayment\/#73_Gioi_han_30_EBITDA_thuan_doi_voi_cac_giao_dich_lien_ket\" >7.3. 30% Net EBITDA Limit for Related Party Transactions<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-25\" href=\"https:\/\/bizzi.vn\/en\/loan-repayment\/#8_Chien_luoc_quan_ly_chi_phi_lai_vay_hieu_qua\" >8. Effective interest expense management strategy<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-26\" href=\"https:\/\/bizzi.vn\/en\/loan-repayment\/#Ket_luan\" >Conclude<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"1_Tong_quan_ve_chi_phi_lai_vay\"><\/span>1. Overview of interest costs<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p data-start=\"132\" data-end=\"426\">Understanding <strong>interest expense<\/strong> is an important factor in <strong>corporate financial management<\/strong>, especially when using borrowed capital to develop production, business or investment activities. The following section will help you grasp the concept, nature and role of interest expenses in <strong><a href=\"https:\/\/bizzi.vn\/cach-lam-bao-cao-tai-chinh-nhanh-va-chuan\/\">financial report<\/a><\/strong>.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"11_Chi_phi_lai_vay_la_gi\"><\/span><b>1.1 What is interest expense?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<blockquote>\n<p class=\"ng-star-inserted\"><strong class=\"ng-star-inserted\"><span class=\"ng-star-inserted\">Interest expense<\/span><\/strong><span class=\"ng-star-inserted\">\u00a0(Interest Expense) is the financial cost that a business must pay for using capital mobilized from lenders such as\u00a0<\/span><span class=\"ng-star-inserted\">bank<\/span><span class=\"ng-star-inserted\">, credit institutions or individuals. On the income statement, this item (Code 23) represents the interest incurred during the period, recorded in\u00a0<\/span><strong class=\"ng-star-inserted\"><span class=\"ng-star-inserted\">Account 635<\/span><\/strong><span class=\"ng-star-inserted\">, not necessarily the actual amount of interest paid.<\/span><\/p>\n<\/blockquote>\n<figure id=\"attachment_999975618\" aria-describedby=\"caption-attachment-999975618\" style=\"width: 1200px\" class=\"wp-caption aligncenter\"><img fetchpriority=\"high\" decoding=\"async\" class=\"wp-image-999975618\" title=\"Interest Expense is the financial cost that a business must pay for the use of capital.\" src=\"https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/06\/02-vi-sao-can-thong-bao-nhac-no-khach-hang.jpg\" alt=\"Interest Expense is the financial cost that a business must pay for the use of capital.\" width=\"1200\" height=\"675\" srcset=\"https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/06\/02-vi-sao-can-thong-bao-nhac-no-khach-hang.jpg 1920w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/06\/02-vi-sao-can-thong-bao-nhac-no-khach-hang-300x169.jpg 300w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/06\/02-vi-sao-can-thong-bao-nhac-no-khach-hang-1024x576.jpg 1024w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/06\/02-vi-sao-can-thong-bao-nhac-no-khach-hang-768x432.jpg 768w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/06\/02-vi-sao-can-thong-bao-nhac-no-khach-hang-1536x864.jpg 1536w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/06\/02-vi-sao-can-thong-bao-nhac-no-khach-hang-18x10.jpg 18w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><figcaption id=\"caption-attachment-999975618\" class=\"wp-caption-text\">Interest Expense is the financial cost that a business must pay for the use of capital.<\/figcaption><\/figure>\n<h3><span class=\"ez-toc-section\" id=\"12_Ban_chat_va_dac_diem_cot_loi_cua_chi_phi_lai_vay\"><\/span><b>1.2 The nature and core characteristics of interest expenses<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p class=\"ng-star-inserted\"><span class=\"ng-star-inserted\">In essence,\u00a0<\/span><strong class=\"ng-star-inserted\"><span class=\"ng-star-inserted\">interest expense<\/span><\/strong><span class=\"ng-star-inserted\">\u00a0is the price of using other people&#039;s capital. It carries with it important core attributes that every manager needs to master:<\/span><\/p>\n<ul>\n<li class=\"ng-star-inserted\"><strong class=\"ng-star-inserted\"><span class=\"ng-star-inserted\">Obligation:<\/span><\/strong><span class=\"ng-star-inserted\"> This is one <\/span><strong><span class=\"ng-star-inserted\">debt obligation<\/span><\/strong><span class=\"ng-star-inserted\"><strong>\u00a0legal<\/strong> as specified in\u00a0<\/span><strong class=\"ng-star-inserted\"><span class=\"ng-star-inserted\">credit agreement<\/span><\/strong><span class=\"ng-star-inserted\">. Businesses must pay on time regardless of profit or loss.<\/span><\/li>\n<li class=\"ng-star-inserted\"><strong class=\"ng-star-inserted\"><span class=\"ng-star-inserted\">Periodicity:<\/span><\/strong><span class=\"ng-star-inserted\">\u00a0This cost is incurred and recorded periodically (monthly, quarterly), creating a constant pressure on cash flow.<\/span><\/li>\n<li class=\"ng-star-inserted\"><strong class=\"ng-star-inserted\"><span class=\"ng-star-inserted\">Debt-driven:<\/span><\/strong><span class=\"ng-star-inserted\">\u00a0Only arises when the business has an account\u00a0<\/span><strong class=\"ng-star-inserted\"><span class=\"ng-star-inserted\">liabilities<\/span><\/strong><span class=\"ng-star-inserted\">, it is a direct consequence of capital structure decisions.<\/span><\/li>\n<li class=\"ng-star-inserted\"><strong class=\"ng-star-inserted\"><span class=\"ng-star-inserted\">Volatility:<\/span><\/strong><span class=\"ng-star-inserted\">\u00a0Costs may vary depending on\u00a0<\/span><span class=\"ng-star-inserted\">interest rate<\/span><span class=\"ng-star-inserted\">\u00a0market (especially with floating rate loans), is directly affected by the monetary policy of\u00a0<\/span><strong class=\"ng-star-inserted\"><span class=\"ng-star-inserted\">State Bank of Vietnam<\/span><\/strong><span class=\"ng-star-inserted\">.<\/span><\/li>\n<li class=\"ng-star-inserted\"><strong class=\"ng-star-inserted\"><span class=\"ng-star-inserted\">Deductibility:<\/span><\/strong><span class=\"ng-star-inserted\">\u00a0This is the most important feature.\u00a0<\/span><strong class=\"ng-star-inserted\"><span class=\"ng-star-inserted\">Interest expense<\/span><\/strong><span class=\"ng-star-inserted\">\u00a0valid will generate a\u00a0<\/span><strong class=\"ng-star-inserted\"><span class=\"ng-star-inserted\">Tax Shield<\/span><\/strong><span class=\"ng-star-inserted\">, helping to reduce corporate income tax of enterprises.<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"13_Cac_loai_chi_phi_lai_vay\"><\/span><b>1.3 Types of interest expenses<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Interest expenses in business can be classified as follows:<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Short term interest:<\/b> Interest expense arises from loans with terms of less than 12 months, typically used to supplement working capital or meet short-term financial needs.<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Long term interest:<\/b> Interest expense from loans with terms of more than 12 months, usually used for investment in fixed assets or long-term projects.<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Overdraft interest:<\/b> Interest expenses arise when a business uses more than the bank account balance according to the granted credit limit.<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Bond and convertible debt interest rates:<\/b> Interest costs associated with the issuance of bonds or convertible debt.<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Financial costs of finance lease assets:<\/b> Interest expense related to leasing assets under finance leases.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"2_Tac_dong_cua_chi_phi_lai_vay_doi_voi_doanh_nghiep\"><\/span>2. Impact of interest costs on businesses<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>Interest expense<\/strong> is the amount of money a business must pay for the use of borrowed capital over a certain period of time. Effective management of interest expenses plays an important role in maintaining the financial health and competitiveness of a business.<\/p>\n<p><b>Impact on business results<\/b><\/p>\n<p>Interest expense is part of financial expenses, directly affecting the profits of enterprises. When interest expense increases, after-tax profits decrease, affecting the ability to reinvest and develop. Especially, in the period of high market interest rates, enterprises face greater cost pressure, leading to narrowed profits.<\/p>\n<p><b>Impact on product, goods and service prices<\/b><\/p>\n<p>Interest expenses are included in the cost of products, goods and services. When interest expenses increase, product costs also increase, affecting competitiveness in the market. Therefore, controlling interest expenses helps businesses maintain reasonable prices and improve their competitive position.<\/p>\n<p><b>Impact on solvency<\/b><\/p>\n<p>Interest expense is a fixed expense that a business must pay periodically. If this expense accounts for a large proportion of total expenses, the business may encounter cash flow difficulties, affecting the ability to pay other financial obligations. Effective control of interest expense helps <strong><a href=\"https:\/\/bizzi.vn\/bien-phap-quan-tri-dong-tien-hieu-qua\/\"><strong>flow management<\/strong> money in business<\/a><\/strong> stable and solvency<\/p>\n<figure id=\"attachment_999975587\" aria-describedby=\"caption-attachment-999975587\" style=\"width: 1200px\" class=\"wp-caption aligncenter\"><img decoding=\"async\" class=\"wp-image-999975587\" title=\"Interest expense is a fixed expense that a business must pay periodically.\" src=\"https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/06\/bizzi-no-qua-han-la-gi-1.jpg\" alt=\"Interest expense is a fixed expense that a business must pay periodically.\" width=\"1200\" height=\"675\" srcset=\"https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/06\/bizzi-no-qua-han-la-gi-1.jpg 1920w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/06\/bizzi-no-qua-han-la-gi-1-300x169.jpg 300w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/06\/bizzi-no-qua-han-la-gi-1-1024x576.jpg 1024w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/06\/bizzi-no-qua-han-la-gi-1-768x432.jpg 768w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/06\/bizzi-no-qua-han-la-gi-1-1536x864.jpg 1536w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/06\/bizzi-no-qua-han-la-gi-1-18x10.jpg 18w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><figcaption id=\"caption-attachment-999975587\" class=\"wp-caption-text\">Interest expense is a fixed expense that a business must pay periodically.<\/figcaption><\/figure>\n<p><b>Impact on financial risk<\/b><\/p>\n<p>Using borrowed capital with high interest costs increases financial leverage, which means increasing financial risks. Enterprises may face the risk of insolvency if they do not manage their loans and related costs well. Especially in volatile economic conditions, controlling financial risks from interest costs is very important.<\/p>\n<p><b>Impact on corporate income tax<\/b><\/p>\n<p>According to regulations, interest expenses are deductible when calculating corporate income tax, but there are certain limits. Specifically, the total deductible interest expenses must not exceed 30% of the total net profit from business operations plus interest expenses and depreciation expenses incurred during the period. Therefore, reasonable management of interest expenses helps optimize tax obligations and avoid related legal issues.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"3_Quy_dinh_phap_luat_ve_chi_phi_lai_vay_2025\"><\/span>3. Legal regulations on interest expenses 2025<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Interest expense is the financial expense that a business must pay for the use of borrowed capital in its business operations. The determination and deduction of interest expense when calculating corporate income tax (CIT) is strictly regulated in Vietnamese law. In 2025, the Government issued Decree 20\/2025\/ND-CP amending and supplementing a number of articles of Decree 132\/2020\/ND-CP, in order to update and adjust regulations related to tax management for businesses with related-party transactions.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"31_Chi_phi_lai_vay_trong_giao_dich_lien_ket\"><\/span><b>3.1 Interest expense in related party transactions<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Related party transactions occur when enterprises have special relationships with each other in terms of capital, management or control, leading to the ability to influence the prices and profits of the participating parties. To control transfer pricing and ensure transparency in tax declarations, Decree 20\/2025\/ND-CP has provided specific regulations on interest expenses in related party transactions.<\/p>\n<p>Accordingly, the total net interest expense (after deducting deposit interest and loan interest) deductible when determining taxable income of CIT shall not exceed 30% of the total net profit from business activities plus net interest expense and depreciation expense incurred during the period. The portion of interest expense exceeding this level may be carried forward to the next tax period, with the transfer period not exceeding 5 consecutive years from the year following the year in which the non-deductible interest expense arose.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"32_Chi_phi_lai_vay_khi_quyet_toan_thue_TNDN\"><\/span><b>3.2 Interest expense when settling corporate income tax<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>When settling corporate income tax, enterprises need to pay attention to the regulations on interest expenses to ensure the reasonableness and validity of deductible expenses. For interest expenses incurred before 2024 but not yet deducted, Decree 20\/2025\/ND-CP allows enterprises to allocate these expenses evenly to the following tax periods, based on the remaining transition period, to minimize financial impacts and support enterprises in complying with tax regulations.<\/p>\n<p>Compliance with regulations on interest expenses not only helps businesses optimize tax obligations but also ensures transparency and legal compliance in financial activities. Therefore, accountants and business owners need to regularly update changes in <strong><a href=\"https:\/\/bizzi.vn\/nhieu-chinh-sach-thue-moi-co-hieu-luc-tu-01-07-2025\/\">changes in tax policy<\/a><\/strong> to apply effectively and avoid legal risks.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"4_Cong_thuc_tinh_chi_phi_lai_vay\"><\/span>4. Formula for calculating interest costs<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p class=\"ng-star-inserted\"><span class=\"ng-star-inserted\">Understanding how to calculate helps businesses be proactive in financial planning. The most popular method today is to calculate interest on\u00a0<\/span><strong class=\"ng-star-inserted\"><span class=\"ng-star-inserted\">Decreasing balance<\/span><\/strong><span class=\"ng-star-inserted\">.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"41_Tinh_chi_phi_lai_vay_ngan_hang\"><\/span><b>4.1 Calculating bank interest costs<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The reducing balance method of calculating interest is based on the actual amount owed after deducting the principal paid in previous periods.<\/p>\n<p>The formula for calculating bank loan interest rates when borrowing capital is usually applied according to the decreasing balance, the calculation formula is as follows:<\/p>\n<p><b>Interest payable (Month) = Current loan balance x Loan interest rate x Actual number of days maintaining balance \/ 365<\/b><\/p>\n<figure id=\"attachment_999975586\" aria-describedby=\"caption-attachment-999975586\" style=\"width: 1200px\" class=\"wp-caption aligncenter\"><img decoding=\"async\" class=\"wp-image-999975586\" title=\"The formula for calculating bank loan interest rates when borrowing capital is usually applied according to the decreasing balance.\" src=\"https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/06\/bizzi-no-qua-han-la-gi.jpg\" alt=\"The formula for calculating bank loan interest rates when borrowing capital is usually applied according to the decreasing balance.\" width=\"1200\" height=\"800\" srcset=\"https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/06\/bizzi-no-qua-han-la-gi.jpg 660w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/06\/bizzi-no-qua-han-la-gi-300x200.jpg 300w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/06\/bizzi-no-qua-han-la-gi-18x12.jpg 18w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><figcaption id=\"caption-attachment-999975586\" class=\"wp-caption-text\">The formula for calculating bank loan interest rates when borrowing capital is usually applied according to the decreasing balance.<\/figcaption><\/figure>\n<h3><span class=\"ez-toc-section\" id=\"42_Tinh_chi_phi_lai_vay_ca_nhan_doanh_nghiep_to_chuc_khac\"><\/span><b>4.2 Calculating interest costs for individuals, businesses, and other organizations<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Interest expense is calculated based on the current outstanding balance, interest rate (monthly\/yearly) and actual loan tenure. The formula for calculating total interest payable is as follows:<\/p>\n<p><b>Interest payable = Monthly interest + Odd-day interest<\/b><\/p>\n<p>In there:<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Interest paid monthly<\/b> = Current loan balance \u00d7 Loan interest rate (year) \u00d7 Actual number of days maintaining outstanding balance \/ 365<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Interest paid daily<\/b> = Current loan balance \u00d7 Loan interest rate (year) \u00d7 Actual number of days maintaining odd balance per month \/ 365<\/li>\n<\/ul>\n<p class=\"ng-star-inserted\"><strong class=\"ng-star-inserted\"><span class=\"ng-star-inserted\">For example:<\/span><\/strong><span class=\"ng-star-inserted\">\u00a0The business borrows 1 billion VND, interest rate 12%\/year (ie 1%\/month), principal payment is 100 million\/month.<\/span><\/p>\n<ul>\n<li class=\"ng-star-inserted\"><span class=\"ng-star-inserted\">January interest:<\/span><span class=\"ng-star-inserted\">\u00a01,000,000,000 x 1% = 10,000,000 VND<\/span><\/li>\n<li class=\"ng-star-inserted\"><span class=\"ng-star-inserted\">February interest (remaining debt 900 million):<\/span><span class=\"ng-star-inserted\">\u00a0900,000,000 x 1% = 9,000,000 VND<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"5_Cach_hach_toan_chi_phi_lai_vay\"><\/span>5. How to account for interest expenses<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Interest expense is a financial expense incurred when <strong><a href=\"https:\/\/bizzi.vn\/vay-von-doanh-nghiep-la-gi-dieu-kien-ho-so-thu-tuc\/\">business loans<\/a><\/strong> from credit institutions or individuals to serve business operations. Accurately accounting for interest expenses helps businesses manage finances effectively and comply with tax regulations. Below are detailed instructions on how to account for reasonable interest expenses, capitalize interest expenses, and unreasonable interest expenses.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"51_Chi_phi_chi_phi_lai_vay\"><\/span><b>5.1 Interest expense<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Interest expenses are considered reasonable and deductible when calculating corporate income tax (CIT) if they meet the following conditions:<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Loan purpose<\/b>: Loans are used for the business operations of the enterprise.<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Loan interest rate<\/b>: Not exceeding 150% the basic interest rate announced by the State Bank of Vietnam at the time of borrowing.<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Contribute charter capital<\/b>: The enterprise has contributed enough charter capital according to the schedule stated in the company charter.<\/li>\n<\/ul>\n<p>When reasonable interest expenses arise, accounting is as follows:<\/p>\n<p><b>In case of periodic interest payment<\/b>:<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">Debit account 635 \u2013 Financial expenses<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\">Credit account 111, 112 \u2013 Cash or Bank deposit<\/li>\n<\/ul>\n<p><b>In case of paying interest in advance for many periods:<\/b><\/p>\n<p>When paying interest:<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">Debit account 242 \u2013 Prepaid expenses<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\">Credit account 111, 112 \u2013 Cash or Bank deposit<\/li>\n<\/ul>\n<p>Allocate interest expense to each accounting period:<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">Debit account 635 \u2013 Financial expenses<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\">Credit account 242 \u2013 Prepaid expenses<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"52_Von_hoa_chi_phi_lai_vay\"><\/span><b>5.2 Capitalization of interest expenses<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Capitalization of borrowing costs is the recording of borrowing costs arising during the investment in construction or production of unfinished assets into the value of that asset. According to Accounting Standard No. 16 - Borrowing costs, borrowing costs are capitalized when:<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset.<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\">The enterprise is certain to gain future economic benefits from the use of that asset.<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\">Borrowing costs can be measured reliably.<\/li>\n<\/ul>\n<p>When capitalized interest expenses arise, accountants record:<\/p>\n<p><b>For construction investment activities<\/b>:<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">Debit account 241 \u2013 Construction in progress<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\">Credit account 111, 112 \u2013 Cash or Bank deposit<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\">Credit account 335 \u2013 Expenses payable (if interest is paid in arrears)<\/li>\n<\/ul>\n<p><b>For the production of unfinished assets<\/b>:<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">Debit account 627 \u2013 General production costs<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\">Credit account 111, 112 \u2013 Cash or Bank deposit<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\">Credit account 335 \u2013 Expenses payable (if interest is paid in arrears)<\/li>\n<\/ul>\n<p>Note: Capitalization of borrowing costs ceases when the activities necessary to prepare the asset for its intended use or sale are completed. Subsequent borrowing costs are recognized as operating expenses in the period.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"53_Xu_ly_chi_phi_lai_vay_khong_duoc_tru\"><\/span><b>5.3. <\/b><span class=\"ng-star-inserted\">Handling non-deductible interest expenses<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p class=\"ng-star-inserted\"><span class=\"ng-star-inserted\">Although not deductible when calculating corporate income tax, accountants must still fully account for these expenses in the books (usually account 635). At the end of the period, when preparing the corporate income tax finalization declaration (Form 03\/TNDN), accountants will make adjustments and remove these expenses at\u00a0<\/span><strong class=\"ng-star-inserted\"><span class=\"ng-star-inserted\">B4 indicator<\/span><\/strong><span class=\"ng-star-inserted\">.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"6_Cach_xu_ly_cac_khoan_chi_phi_lai_vay_khong_hop_ly\"><\/span>6. How to handle unreasonable interest expenses<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><b>Interest expense<\/b> Interest expense is the expense that a business must pay for using borrowed capital for production and business activities. However, not all interest expenses are considered reasonable and deductible when calculating corporate income tax (CIT). Identifying and properly handling unreasonable interest expenses is very important to ensure compliance with legal regulations and optimize the tax obligations of the business.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"61_Tieu_chi_xac_dinh_chi_phi_lai_vay_khong_hop_ly\"><\/span><b>6.1. Criteria for determining unreasonable interest expenses<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>According to Circular 96\/2015\/TT-BTC, some cases where interest expenses are not deductible when calculating corporate income tax include:<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Charter capital not fully contributed:<\/b> In case the enterprise has not contributed enough charter capital according to the registered schedule, the interest expense corresponding to the missing charter capital will not be deducted. For example, if the enterprise borrows 1 billion VND with an interest rate of 10%\/year and still lacks 300 million VND in charter capital in 5 months, the non-deductible interest will be 300 million VND x 10%\/12 months x 5 months = 12.5 million VND.<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Loan interest rate exceeds 150% base interest rate:<\/b> If the enterprise borrows at an interest rate higher than the 150% base interest rate announced by the State Bank at the time of borrowing, the excess interest will not be included in the reasonable expenses.<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Loans not for production and business activities:<\/b> Interest expenses for loans not used for the business&#039;s production and business activities will not be deductible.<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Large cash balance but still borrowing capital:<\/b> If a business has a large cash balance but still borrows, the tax authority may review and exclude this interest expense because it considers the borrowing unreasonable.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"62_Cach_hach_toan_chi_phi_lai_vay_khong_hop_ly\"><\/span><b>6.2. Unreasonable way of accounting for interest expenses<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Although unreasonable interest expenses are not deductible when calculating corporate income tax, enterprises still need to fully account for them to accurately reflect their financial situation:<\/p>\n<p><b>When paying interest:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">Debit account 811: Other expenses<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\">Credit account 111, 112: Cash or bank deposit<\/li>\n<\/ul>\n<p><b>At the end of the period, carry over costs:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">Debit account 911: Determine business results<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\">Credit account 811: Other expenses<\/li>\n<\/ul>\n<p>Note that these expenses will not be deducted when determining taxable income for corporate income tax.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"63_Ke_khai_va_dieu_chinh_tren_to_khai_quyet_toan_thue_TNDN\"><\/span><b>6.3. Declaration and adjustment on corporate income tax finalization declaration<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>At the end of the year, when preparing the corporate income tax finalization declaration (form No. 03\/TNDN), the enterprise needs to:<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Determine the total amount of unreasonable interest expense<\/b> during the period.<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Enter this total into cell B4.<\/b> (\u201cNon-deductible expenses when determining taxable income\u201d) on the tax finalization declaration.<\/li>\n<\/ul>\n<p>This ensures that unreasonable expenses are excluded from taxable income, in compliance with tax laws.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"64_Giai_phap_han_che_phat_sinh_chi_phi_lai_vay_khong_hop_ly\"><\/span><b>6.4. Solutions to limit the occurrence of unreasonable interest costs<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>To avoid unreasonable interest expenses, businesses should:<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Contribute charter capital fully and on time<\/b> according to business registration<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Build a reasonable financial plan<\/b>, avoid borrowing capital when not really necessary, especially when the business has excess cash.<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Ensure reasonable loan interest rates<\/b>, not exceeding 150% base interest rate announced by the State Bank.<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Use loan for the right purpose<\/b>, serving the production and business activities of the enterprise.<\/li>\n<\/ul>\n<p>Proper management and accounting of unreasonable interest expenses will help businesses comply with legal regulations, optimize tax obligations and improve financial management efficiency.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"7_Cac_khoan_chi_phi_lai_vay_duoc_tru_khi_tinh_thue_TNDN\"><\/span>7. Interest expenses are deductible when calculating corporate income tax.<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Not all <strong>interest expense<\/strong> are all included in reasonable expenses when determining taxable income. Enterprises need to understand the provisions of tax law to determine the portion of interest expenses that can be deducted when calculating corporate income tax (CIT). Below are some common accepted cases:<\/p>\n<h3><span class=\"ez-toc-section\" id=\"71_Lai_vay_tu_ca_nhan_khong_vuot_qua_150_lai_suat_co_ban_cua_Ngan_hang_Nha_nuoc_Viet_Nam\"><\/span><b>7.1. Interest on loans from individuals shall not exceed 150% base interest rate of the State Bank of Vietnam.<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>When a business borrows capital from an individual, the interest expense is deductible when calculating corporate income tax if the interest rate does not exceed 150% the basic interest rate announced by the State Bank of Vietnam at the time of borrowing. If the interest rate exceeds this level, the excess interest expense will not be included in the deductible expenses.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"72_Lai_vay_tuong_ung_voi_phan_von_dieu_le_da_gop_du\"><\/span><b>7.2. Interest on loans corresponding to the fully contributed charter capital<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Enterprises are only allowed to deduct interest expenses when they have fully contributed their charter capital according to the registered schedule. If they have not fully contributed their charter capital, the interest expense corresponding to the remaining charter capital will not be included in the deductible expenses.<\/p>\n<p>Specifically, if the loan amount is less than or equal to the remaining charter capital, the entire loan interest is a non-deductible expense. If the loan amount is greater than the remaining charter capital, it is necessary to determine the non-deductible interest rate based on the charter capital that has not been fully contributed.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"73_Gioi_han_30_EBITDA_thuan_doi_voi_cac_giao_dich_lien_ket\"><\/span><b>7.3. 30% Net EBITDA Limit for Related Party Transactions<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>For enterprises with related-party transactions, the total interest expense (after deducting deposit interest and loan interest) deductible when determining taxable income of CIT shall not exceed 30% of the total net profit from business activities in the period, plus interest expense and depreciation expense incurred in the period. The portion of interest expense that is not deductible may be carried forward to the next tax period, but the transfer period shall not exceed 5 years.<\/p>\n<h2 class=\"ng-star-inserted\"><span class=\"ez-toc-section\" id=\"8_Chien_luoc_quan_ly_chi_phi_lai_vay_hieu_qua\"><\/span><span class=\"ng-star-inserted\">8. Effective interest expense management strategy<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p class=\"ng-star-inserted\"><span class=\"ng-star-inserted\">With solution <strong><a href=\"https:\/\/bizzi.vn\/quan-ly-chi-phi\/\">Bizzi expense management<\/a><\/strong>, businesses can build a professional process to control and optimize\u00a0<\/span><strong class=\"ng-star-inserted\"><span class=\"ng-star-inserted\">interest expense<\/span><\/strong><span class=\"ng-star-inserted\">.<\/span><\/p>\n<ul>\n<li class=\"ng-star-inserted\"><strong class=\"ng-star-inserted\"><span class=\"ng-star-inserted\">Optimizing capital structure:<\/span><\/strong><span class=\"ng-star-inserted\">\u00a0Reasonable balance between debt and equity to take advantage of\u00a0<\/span><strong class=\"ng-star-inserted\"><span class=\"ng-star-inserted\">financial leverage<\/span><\/strong><span class=\"ng-star-inserted\">\u00a0without pushing\u00a0<\/span><strong class=\"ng-star-inserted\"><span class=\"ng-star-inserted\">financial risk<\/span><\/strong><span class=\"ng-star-inserted\">\u00a0up too high<\/span><\/li>\n<li class=\"ng-star-inserted\"><strong class=\"ng-star-inserted\"><span class=\"ng-star-inserted\">Cash Flow &amp; EBITDA Planning:<\/span><\/strong><span class=\"ng-star-inserted\">\u00a0Proactively forecast cash flow and EBITDA to control the 30% ceiling, avoiding passive cost exclusion.<\/span><\/li>\n<li class=\"ng-star-inserted\"><strong class=\"ng-star-inserted\"><span class=\"ng-star-inserted\">Complete legal documents:<\/span><\/strong><span class=\"ng-star-inserted\">\u00a0Use Bizzi&#039;s digital storage system to ensure all contracts and payment documents are always ready and complete when needed.\u00a0<\/span><strong class=\"ng-star-inserted\"><span class=\"ng-star-inserted\">tax authority<\/span><\/strong><span class=\"ng-star-inserted\">\u00a0check.<\/span><\/li>\n<li class=\"ng-star-inserted\"><strong class=\"ng-star-inserted\"><span class=\"ng-star-inserted\">Choose a smart financial partner:<\/span><\/strong><span class=\"ng-star-inserted\">\u00a0Compare interest rates, hidden fees and choose a reputable lender with flexible loan terms.<\/span><\/li>\n<li class=\"ng-star-inserted\"><strong class=\"ng-star-inserted\"><span class=\"ng-star-inserted\">Contribute full charter capital on time:<\/span><\/strong><span class=\"ng-star-inserted\">\u00a0This is a prerequisite to avoid incurring additional charges.\u00a0<\/span><strong class=\"ng-star-inserted\"><span class=\"ng-star-inserted\">interest expense<\/span><\/strong><span class=\"ng-star-inserted\">\u00a0unreasonable<\/span><\/li>\n<\/ul>\n<figure id=\"attachment_999974476\" aria-describedby=\"caption-attachment-999974476\" style=\"width: 1200px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-999974476\" title=\"With Bizzi&#039;s cost management solution, businesses can build a professional process for controlling and optimizing interest costs.\" src=\"https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/05\/mockup-doi-soat-scaled.png\" alt=\"With Bizzi&#039;s cost management solution, businesses can build a professional process for controlling and optimizing interest costs.\" width=\"1200\" height=\"787\" srcset=\"https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/05\/mockup-doi-soat-scaled.png 2560w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/05\/mockup-doi-soat-300x197.png 300w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/05\/mockup-doi-soat-1024x671.png 1024w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/05\/mockup-doi-soat-768x504.png 768w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/05\/mockup-doi-soat-1536x1007.png 1536w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/05\/mockup-doi-soat-2048x1343.png 2048w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/05\/mockup-doi-soat-18x12.png 18w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><figcaption id=\"caption-attachment-999974476\" class=\"wp-caption-text\">With Bizzi&#039;s cost management solution, businesses can build a professional process for controlling and optimizing interest costs.<\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"Ket_luan\"><\/span>Conclude<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Interest expense is not only an accounting item but also a key factor determining the financial performance of a business. Understanding how to account for and optimize this cost will help businesses better control cash flow, increase profits and ensure sustainable development.<\/p>\n<p>If you are looking for flexible financial solutions, <b>Bizzi Financing<\/b> helps businesses easily access suitable capital, even without collateral. Discover now:<\/p>\n<p><strong>Read more:<\/strong><\/p>\n<ul>\n<li><strong><a href=\"https:\/\/bizzi.vn\/tai-tro-von-la-gi-huong-dan-nguon-von-cho-doanh-nghiep\/\">Guide to capital sources for businesses<br \/>\n<\/a><\/strong><\/li>\n<li><strong><a href=\"https:\/\/bizzi.vn\/vay-von-kinh-doanh-khong-tai-san-dam-bao-nhu-the-nao\/\">How to get a business loan without collateral<\/a><\/strong><\/li>\n<\/ul>","protected":false},"excerpt":{"rendered":"<p>Interest expense is a major item that every business using borrowed capital has to face. It is not only\u2026<\/p>","protected":false},"author":57,"featured_media":999971490,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","inline_featured_image":false,"footnotes":""},"categories":[263,84],"tags":[],"class_list":["post-999971484","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-kien-thuc","category-thiet-lap"],"acf":[],"_links":{"self":[{"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/posts\/999971484","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/users\/57"}],"replies":[{"embeddable":true,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/comments?post=999971484"}],"version-history":[{"count":10,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/posts\/999971484\/revisions"}],"predecessor-version":[{"id":999980586,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/posts\/999971484\/revisions\/999980586"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/media\/999971490"}],"wp:attachment":[{"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/media?parent=999971484"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/categories?post=999971484"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/tags?post=999971484"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}