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    China Daily Website

    Gains from local govt bonds to be exempt from income tax

    Updated: 2013-04-26 21:19
    By Zheng Yangpeng ( chinadaily.com.cn)

    Gains from local government bonds will be exempt from income tax, a statement posted on the Finance Ministry’s website said on Friday.

    The exemption will include bonds bought in 2012 and after that, according to the statement jointly issued by the ministry and the State Administration of Taxation.

    The measure aims to encourage the purchase of the bonds by individuals and companies, Zhang Yugui, dean of the College of International Finance and Commerce of the Shanghai International Studies University told China Daily.

    “As Chinese local governments’ public finances are under great pressure and investment remains the largest engine to keep the economic growth on track, the move is realistic,” Zhang said.

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