Financial Regulatory Forum

China to consider interest tax on traded govt bonds

By John Manley
August 28, 2009
china | government bonds | tax

china-finance-ministry    SHANGHAI, Aug 28 (Reuters) – The Chinese finance ministry will consider taxing interest income on traded government bonds, serveral sources close to the matter told Reuters.
   The ministry will consider assessing a 5 percent income tax on interest on government bonds after they have been traded in the secondary market, the sources said.
   The finance ministry is expected to hold discussions on the matter in early September, they added.
   Current income tax rules specify that interest income on government bonds held to maturity is exempt from tax but do not clearly state whether the interest income on traded government bonds is exempt. ($1 = 6.83 yuan) (Reporting by Hua Zhong and Karen Yeung; Editing by Edmund Klamann) ((karen.yeung@thomsonreuters.com; +86 21 6104 1783; Reuters Messaging: karen.yeung.reuters.com@reuters.net)) ((If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com)) Keywords: CHINA BONDS/TAX 
  
Friday, 28 August 2009 08:16:54RTRS [nSHA319206] {C}ENDS

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