财政部延续两项境外机构投资相关债券利息免税优惠政策

Group 1 - The Ministry of Finance and the State Taxation Administration announced the extension of tax exemption policies for foreign institutions investing in the domestic bond market, effective from January 1, 2026, to December 31, 2027, exempting corporate income tax and value-added tax on bond interest income [1] - From August 8, 2025, to December 31, 2027, foreign institutions will be exempt from value-added tax on interest income from government bonds and local government bonds issued abroad [1] - The previous announcement indicated that from August 8, 2025, value-added tax will be reinstated on interest income from newly issued government bonds, local government bonds, and financial bonds, but the new policy provides an exemption for foreign institutions [1] Group 2 - The recent tax exemption policies are part of China's efforts to accelerate the opening of its financial markets, with foreign investors increasingly participating and contributing to the internationalization of the Renminbi [2] - The exemption will lower the holding costs for foreign institutional investors and enhance their returns, thereby attracting more investment into China's bond market and further promoting its openness [2]