Laws of the People's Republic of China

The State Administration of Taxation

Official Reply of the State Administration of Taxation on Issues Concerning Taxation on Interest Income of Enterprises with Foreign Investment and Foreign Enterprises from Purchasing Treasury Bonds

GuoShuiHan [1999] No.818

December 1,1999

Beijing State Taxation Bureau:

Your Request for Instruction on the Taxation of Interest Income of Enterprises with Foreign Investment and Foreign Enterprises from Purchasing Treasury Bonds has been received. The reply is given as follows upon deliberation:

According to Article 12 of the Regulations on Treasury Bonds of the People's Republic of China (the decree No.95 of the State Council) promulgated by the State Council on March 18,1992, the interest income of enterprises with foreign investment and foreign enterprises from purchasing treasury bonds is exempted from corporate income tax. But proceeds from assignment of treasury bonds shall be levied corporate income tax according to law.