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2025-08-01 18:22:19
What are the impacts of resuming VAT on interest income from treasury bonds and other bonds? The Ministry of Finance and the State Administration of Taxation announced on the 1st that, effective August 8, 2025, VAT will be reinstated on interest income from newly issued treasury bonds, local government bonds, and financial bonds issued on or after that date. "This resumption of VAT on interest income from treasury bonds, local government bonds, and financial bonds adopts a 'new and old phased approach.' Existing bonds will continue to enjoy preferential VAT policies, and their interest income will continue to be VAT-exempt until maturity. Only interest income from newly issued bonds will be subject to VAT. This will not affect investor interests or bond market stability, and will facilitate the smooth implementation of the policy adjustment," said Liang Ji, Director of the Public Revenue Research Center at the Chinese Academy of Fiscal Sciences. Experts and industry insiders stated that this policy adjustment will have a limited impact on the market and will have little impact on individual investors. Interest income earned by financial institutions from interbank deposits, interbank loans, and interbank certificates of deposit will continue to be subject to the relevant VAT exemption policies, and will have no impact on the relevant institutions. (Xinhua News Agency)
