Announcement on Extending the Enterprise Income Tax and Value-added Tax Policies for Overseas Institutions Investing in the Domestic Bond Market
Announcement of the Ministry of Finance and the State Taxation Administration [2021] No.34
November 22, 2021
To further promote the liberalization of the domestic bond market, the related policies are hereby announced as follows:
Starting from November 7, 2021 to December 31, 2025, income from bond interest derived by an overseas institution from investment in the domestic bond market shall be temporarily exempted from Enterprise Income Tax (EIT) and Value-Added Tax (VAT).
The scope of EIT exemption provided in the preceding paragraph does not include bond interest derived by an establishment or place set up by an overseas institution which is effectively connected to that establishment or place.
