Bond interest income belongs to taxable income. Bond interest income shall be accrued daily during the actual holding period of the bond, and shall be recorded according to the face value of the bond and the amount accrued by coupon rate. The total taxable amount included in the income of the enterprise shall be taxed according to the applicable income tax rate of the enterprise (generally 25%), and the personal income tax shall be calculated at 20%.

However, the income from debt interest is tax-free income. The State Council 1992 issued the "People's Republic of China (PRC) Treasury Bill Regulations" (the State Council Decree No.95) Article 12 stipulates that the interest income of treasury bills enjoys tax exemption. At present, Article 21 of the Detailed Rules for the Implementation of the Interim Regulations on Enterprise Income Tax, which is domestically funded, also stipulates: "The interest income of taxpayers purchasing government bonds is not included in the taxable income."

Bond interest refers to the interest that fund assets get regularly because they invest in different kinds of bonds (government bonds, local government bonds, corporate bonds, financial bonds, etc.). China's "Interim Measures for the Management of Securities Investment Funds" stipulates that the proportion of funds investing in government bonds shall not be less than 20% of the fund's net asset value. Therefore, bond interest is also an indispensable part of investment return.

Bond interest income refers to the interest income realized by bond investment.

Extended data

(1) Notice of State Taxation Administration of The People's Republic of China, Ministry of Finance on Exemption from Income Tax on Interest Income of Local Government Bonds;

1. The interest income of local government bonds issued by enterprises and individuals in 2009, 20 10, 2010/year shall be exempted from enterprise income tax and personal income tax.

2. Local government bonds refer to 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.

(2) Notice of the Ministry of Finance State Taxation Administration of The People's Republic of China on Enterprise Income Tax Policy for Interest Income of Railway Construction Bonds;

1. The enterprise income tax will be levied at half on the interest income obtained by enterprises from holding China Railway Construction bonds issued in 201-2013 years.

2. China Railway Construction Bond refers to the bond issued and repaid by the Ministry of Railways with the approval of the National Development and Reform Commission.

Reference People's Republic of China (PRC) State Taxation Administration of The People's Republic of China? Caishui [2011] No.76