Announcement on Value-Added Tax Policy Concerning Interest Income from Government Bonds and Other Bonds

 

 

Issued by:

Ministry of Finance and State Taxation Administration

Issue No.:

MOF & STA Circular [2025] No. 4

Issue Date:

31 July 2025

Effective Date:

8 August 2025

Links:

https://fgk.chinatax.gov.cn/zcfgk/c102416/c5242161/content.html

The main contents of the announcement are as follows:

  • Interest income on central-government bonds, local-government bonds, and financial bonds newly issued on or after 8 August 2025 shall be subject to value-added tax. 
  • Interest income on such bonds issued before 8 August 2025—including any tranches re-opened on or after that date—shall remain exempt from value-added tax until the bonds mature.

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