Chinanews.com, December 2nd. According to the website of the central bank, the Ministry of Finance and the State Administration of Taxation issued the "Announcement on the Continuation of Corporate Income Tax and Value-Added Tax Policies for Foreign Institutions Investing in the Domestic Bond Market (Announcement No. 34 of 2021 of the Ministry of Finance and Taxation Administration)" (Following (Referred to as the Announcement), the announcement stated that in order to further promote the opening of the bond market, from November 7, 2021 to December 31, 2025, the bond interest income obtained by foreign institutions investing in the domestic bond market will be temporarily exempted from corporate income tax and VAT.
The scope of the aforementioned temporary exemption of corporate income tax does not include the bond interest obtained by the institutions and venues established by foreign institutions in China that are actually connected to the institutions and venues.
Image source: screenshot of the central bank website