I. Hainan Double 15% Tax Incentive
Corporate Income Tax: Enterprises operating in Hainan enjoy a maximum corporate income tax rate of 15% (25% in the mainland, 16.5% in Hong Kong, 17% in Singapore).
Personal Income Tax: High-income talents working in Hainan can apply for a maximum personal income tax rate of 15% in Hainan (45% in the mainland, 17% in Hong Kong, 22% in Singapore).
Combination of Five Taxes into One: Hainan will combine small taxes such as value-added tax and surcharges into a consumption tax in the future, simplifying the tax system.
II. Hainan Duty-Free Imports (Support for Cross-Border E-Commerce)
Negative List Management System: Hainan implements a negative list management system, with zero tariffs on products outside the list.
Cross-Border E-Commerce Subsidies: Provides a series of subsidies to encourage well-known domestic and foreign enterprises, leading cross-border e-commerce enterprises, and the construction of offline O2O experience stores.
III. Hainan Foreign Exchange Freedom
Hainan is the second city in China, after Hong Kong, where the RMB can be freely exchanged for any foreign currency in the world. The advantage compared to Hong Kong is that the RMB can be directly exchanged without converting to Hong Kong dollars first.
IV. Hainan Processing Value-Added 30% Sales Tax-Free
The raw materials and auxiliary materials in Hainan Free Trade Port are "zero tariff". Raw materials imported from abroad are processed and produced in Hainan, with a value-added of 30%. When they are resold in the mainland, they are subject to duty-free treatment, encouraging processing and production enterprises in Hainan.
V. Hainan as an Offshore Enterprise
Changes after Hainan's Closure: All enterprises in Hainan will be transformed into offshore enterprises, and all Hainan residents will be transformed into offshore residents. The coastal laws will be separated from the mainland and an independent "Hainan Law" will be implemented.
Freedom of Resident Activities: Hainan residents enjoy convenient entry and exit, with visa-free access to more than 100 countries.
International Medical and Educational Resources: Encourage the construction of international medical facilities and enjoy advanced international medical conditions and educational resources, such as the Hainan Lecheng International Medical Advanced Demonstration Zone and the Lingshui Li'an Port International Education Pilot Zone.
VI. Hainan Investment Tax Exemption
Before 2025, the income derived from overseas investments in tourism, modern service industries, and high-tech industries in Hainan will be exempt from corporate income tax.
VII. Free Entry of Foreign Investment
Visa-Free Policy: In the future, the first-tier cities will be opened up, and 190 countries will enjoy visa-free entry, allowing free movement of personnel within the island and visa-free entry for foreign personnel to work and invest freely in Hainan.
Foreign Investment Registration and Listing: Foreign capital can freely register companies in Hainan, with the potential for future listing on the Chinese A-share market.
