China to waive VAT on bonded delivery of certain commodity futures

China will temporarily waive value-added tax (VAT) for the bonded delivery of commodity futures that are to open to overseas investment.

The exemption, in a bid to support the opening up of the commodity futures market, was jointly announced Tuesday by the Ministry of Finance and State Administration of Taxation.

Commodities actually delivered in aforementioned futures transactions, if imported or exported, will be subject to the current tax policy for the import and export of goods, said the announcement.

The VAT waiver will be effective from Nov. 30, 2018 to Nov. 29, 2023, said the announcement.