Interest payments on loans extended to non‑financial enterprises are generally deductible as business expenses, but the deduction is limited to interest calculated at or below the rate prescribed by tax regulations. When the actual interest rate exceeds the standard benchmark, the portion of interest above the permitted threshold is considered non‑deductible. This rule is intended to prevent excessive borrowing costs from being used to artificially reduce taxable income. Taxpayers must identify the statutory benchmark rate, which varies by loan type and market conditions, and calculate the allowable portion of interest accordingly. Documentation of the loan agreement, interest calculations, and supporting evidence of the benchmark rate must be retained for audit purposes. By adhering to these guidelines, businesses can ensure compliance while maximizing legitimate expense deductions, and they avoid potential penalties associated with claiming disallowed interest charges.