新发国债等利息收入拟恢复征收增值税

Core Viewpoint - The Ministry of Finance and the State Taxation Administration announced the restoration of value-added tax (VAT) on interest income from newly issued government bonds, local government bonds, and financial bonds starting from August 8, 2025, while existing bonds will continue to be exempt until maturity [1][3]. Group 1: Tax Policy Changes - The new tax policy will apply to bonds issued after August 8, 2025, while bonds issued before this date will remain exempt from VAT until they mature [1][3]. - Previously, interest income from government bonds was exempt from both corporate income tax and personal income tax, as well as VAT, which was part of a broader tax policy aimed at encouraging investment in government securities [1][2]. Group 2: Market Impact - The announcement led to a temporary increase in the yield of 10-year government bonds, which rose from 1.7040% to 1.7150%, before returning to previous levels shortly after [2]. - Market participants indicated that the specific impact of the new tax rate on the bond market remains uncertain, suggesting a need for long-term market re-pricing [2]. Group 3: Industry Insights - Experts noted that the tax policy change is expected to have a neutral impact on the market, as the tax revenue from this change is relatively small compared to the profits of financial institutions [2]. - The central bank previously highlighted the influence of tax policies on bond market pricing and the need for improved pricing efficiency and risk management capabilities within the bond market [2][3].