- Starting August 8, 2025, interest income from newly issued government, local government, and financial bonds will be subject to VAT.
- Financial institutions will pay VAT at a rate of 6 percent for proprietary investments.
- Asset management institutions of non-public funds will pay VAT at a rate of 3 percent.
- Bonds issued before August 8, 2025, will remain VAT-exempt until maturity.
- Public fund managers will continue to enjoy VAT exemption.
- The new regulation may lead to dual pricing for old and new bonds.
- There is debate over whether public funds will continue to receive tax exemptions.
Source: finance.caixin.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
