Announcement of the Ministry of Finance and the State Taxation Administration on Extending the Enterprise Income Tax and Value Added Tax Policy for Overseas Institutions Investing in the Domestic Bond Market

Announcement of the Ministry of Finance and the State Taxation Administration on Extending the Enterprise Income Tax and Value Added Tax Policy for Overseas Institutions Investing in the Domestic Bond Market

Ministry of Finance  State Taxation Administration Announcement No. 34 of 2021

In order to further open up the bond market, the relevant tax policy is hereby announced as follows:

From November 7, 2021 to December 31, 2025, income from the bond interest derived from investment in the domestic bond market by overseas institutions is temporarily exempt from enterprise income tax and value added tax.

The scope of the above-mentioned temporary exemption from enterprise income tax excludes the bond interest that is obtained by establishments or places set up by overseas institutions and that is effectively connected with such establishments or places.

Ministry of Finance   State Taxation Administration

November 22, 2021

All information in this document is authentic in Chinese. English is provided for reference only. In case of any discrepancy, the Chinese version shall prevail.