On September 22nd, 20 1 1, the Ministry of Finance issued the Notice on Exemption of Income Tax on Interest Income of Local Government Bonds, which pointed out that the interest income of local government bonds issued in 2009, 20 1 and 201was exempted from corporate income tax and personal income tax.
Local government bonds are bonds issued and repaid by the governments of provinces, autonomous regions, municipalities directly under the Central Government and cities under separate state planning with the approval of the State Council. At present, the scope of local government debt in China is local government bonds issued according to law, and the government debt in the form of non-government bonds identified by screening at the end of 20 14 is cleared.
After the implementation of the new budget law, the debts borrowed by local state-owned enterprises (including financing platform companies) are not government debts according to law, and state-owned enterprises are responsible for repayment, while local governments are not responsible for repayment; As the investor, the local government bears limited liability within the scope of capital contribution.
Extended data:
By the end of 20 15, China's local government debt was 16 trillion yuan. If the debt ratio (debt balance/comprehensive financial resources) is used to measure the local government debt level, the local government debt ratio in 20 15 is 89.2%, which is lower than the internationally accepted early warning standard.
Together with the central government debt 10.66 trillion yuan included in the budget management, according to the GDP data released by the National Bureau of Statistics, the government debt ratio (debt balance /GDP) is 38.9%, which is lower than the warning line of 60% in the European Union, and also lower than the level of major market economy countries and emerging market countries.
In 20 16, with the approval of the National People's Congress, the central government debt limit was increased by10.4 trillion yuan, and the local government debt limit was increased by 1. 18 trillion yuan, including 780 billion yuan in general debt and 400 billion yuan in special debt.
In 20 16, local governments increased bond funds, mainly for major public welfare projects. All localities have actively taken measures to make full use of newly-increased local government bond funds and promote supply-side structural reforms, which have played an important role in achieving steady economic growth, deleveraging the real economy and making up for shortcomings in economic and social undertakings.
People's Daily Online-Ministry of Finance: Interest on local government bonds issued in recent three years is exempt from income tax.
Phoenix. Com- Ministry of Finance: The government does not assume the debt repayment responsibility of local state-owned enterprises.