Core Viewpoint - The Ministry of Finance and the State Taxation Administration have announced the continuation of tax policies for foreign institutions investing in the domestic bond market, specifically exempting corporate income tax and value-added tax on bond interest income from January 1, 2026, to December 31, 2027 [1] Tax Policy Summary - From January 1, 2026, to December 31, 2027, foreign institutions investing in the domestic bond market will be temporarily exempt from corporate income tax and value-added tax on bond interest income [1] - The exemption does not apply to bond interest income earned by foreign institutions that have established entities or places in China, which are related to the income [1]

Core Viewpoint - The Ministry of Finance has announced a temporary exemption from corporate income tax and value-added tax for foreign institutions investing in the domestic bond market from January 1, 2026, to December 31, 2027 [1] Group 1 - The exemption applies to interest income from bonds obtained by foreign institutions in the domestic bond market [1] - The scope of the exemption does not include interest income from bonds related to institutions or places established by foreign entities within the country [1]