China Extends Tax Incentives for Overseas Investment in Bonds(1)

(Adds details from separate statement in the last two bullets)

China extends its policy exempting overseas institutional investors from paying corporate income tax and value-added tax for interest income gained from investments in China’s onshore bond market, according to a statement from the Ministry of Finance.

• The exemption, which targets boosting the opening-up of the bond market, will last until Dec. 31 2027 from Jan. 1 2026
• Separately, China also extends its policy exempting overseas institutional investors from paying value-added tax for interest income earned from investing in China’s government bonds and local government bonds issued offshore
• The extension is ...