China Extends VAT to Bond Interest Income

China's Ministry of Finance and State Taxation Administration have jointly issued Announcement No. 4 of 2025 on the VAT policy for bond interest income. The announcement provides that interest income from newly issued treasury bonds, local government bonds, and financial bonds on or after 8 August 2025 is subject to VAT. Interest income from bonds issued before 8 August 2025 remains VAT-exempt…
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