Only book-entry treasury bonds can be transferred at any time in circulation, but they cannot be transferred during the issuance period. Voucher-type treasury bonds cannot be circulated and transferred, but they can apply for early withdrawal and pay interest according to the holding time, but some interest will be lost and a certain handling fee will be paid. The circulation of national debt can take specific ways such as transfer of national debt, spot trading of national debt, futures trading of national debt and repurchase of national debt.

Is the income from the transfer of national debt tax-free?

This is duty-free goods. According to Article 21 of the Detailed Rules for the Implementation of the Provisional Regulations on Enterprise Income Tax, the interest income of taxpayers purchasing government bonds is not included in the taxable income, but it is part of the total income. It is a common practice to exempt debt interest's income, mainly because debt interest is fully paid by the state financial funds. If the tax is levied, on the one hand, it is equivalent to recovering part of the interest paid by the state finance through income tax, which is of no practical significance; on the other hand, it will reduce the interest income finally obtained by the buyers of government bonds, which is not conducive to encouraging enterprises to buy government bonds.