Two Authorities Clarify VAT Policy on Interest Income from Treasury and Other Bonds

The Ministry of Finance (MOF) and the State Taxation Administration (STA) have recently jointly issued the Announcement on the Value-Added Tax Policy for Interest Income from Treasury and Other Bonds (the "Announcement").

According to the Announcement, starting from August 8, 2025, value-added tax (VAT) will be reinstated on interest income derived from treasury bonds, local government bonds, and financial bonds issued on or after that date. For treasury bonds, local government bonds, and financial bonds issued prior to August 8, 2025 (including any portions subsequently issued on or after that date), interest income will remain exempt from VAT until the bonds mature.



(Source: http://szs.mof.gov.cn/zhengcefabu/202508/t20250801_3969257.htm)

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