Caixin
Aug 31, 2018 06:04 PM
FINANCE

China Scraps Taxes on Corporate Bonds for Foreigners

The Chinese government is cutting taxes for foreign institutions looking to invest in the country’s $11 trillion bond market. Photo: VCG
The Chinese government is cutting taxes for foreign institutions looking to invest in the country’s $11 trillion bond market. Photo: VCG

The Chinese government is temporarily eliminating taxes for foreign institutions looking to invest in the country’s corporate bond market amid a wave of bond defaults this year, even as international interest surges.

Overseas institutions investing in China’s $11 trillion bond market will now be exempt from paying corporate income tax and value-added tax (VAT) on their interest income for the next three years, the State Council, China’s cabinet, announced (link in Chinese) on Thursday.

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