China Tax Agency Announces VAT Information on Interest Income From Government, Local Government, Financial Bonds

The Chinese State Administration of Taxation July 31 announced VAT information on interest income from government bonds, local government bonds, and financial bonds. The announcement includes that: 1) VAT will be reinstated from Aug. 8 on interest income from newly issued government bonds, local government bonds, and financial bonds on or after that date; 2) interest income from such bonds issued before Aug. 8, including portions issued after, will continue to be exempt from VAT until the bonds mature; and 3) the specified financial bonds refer to securities issued by legally established financial institutions within China in the national inter-bank ...