China Plans Tax Cuts for Foreign Bond Investors to Aid Growth
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China will exempt foreign institutions from paying some taxes on interest gains in the onshore bond market as part of efforts to support the economy.
The exemption announced after a State Council meeting presided over by Premier Li Keqiang on Thursday covered corporate income and value-added taxes for a period tentatively set at three years. Together with other tax breaks measures announced at the meeting, the cabinet will also cut the financial burden on businesses by a total of 45 billion yuan ($6.6 billion) a year, according to a statement posted on the government’s website.