Regarding the "zero tariff" policy, after the implementation of island-wide customs clearance operation and degenerate tax system, the goods which are not included in the Catalogue of Goods subject to Import Duties are allowed to be imported to Hainan FTP and will be exempted from import duties. Goods with "zero tariff" will be exempted from routine customs supervision. At that time, the special customs supervision areas such as Yangpu Bonded Port Area and Haikou Comprehensive Bonded Area will no longer be retained.
According to the preferential tax measures, for enterprises in the "Encouraged Industry", 15% corporate income tax (“CIT”) rate, instead of the currently applicable standard corporate income tax rate 25%, will be applied. For individuals with high-end or urgently needed skills, the maximum rate of individual income tax is 15%, which is far lower compared to the current progressive tax rate of 45%.
In addition, a CIT exemption would apply to foreign-sourced dividend income received by newly established Hainan enterprises in the tourism, modern services, and high-tech industry sectors (i.e. the tax exemption method of double tax deduction is adopted instead of the corporate income tax system under the existing credit relief system). Complete (100%) tax depreciation and accelerated depreciation regimes would also be available.
In addition to the above, the plan mentions that tax payment will be assessed and pre-warned in accordance with the principle of the locations of substantial economic activities and value creation. The local government will use the actual place of business and place of residence as the criteria to prevent tax base erosion and profit transfer.
The island-wide pilot program will help bring into full play the advantages of highly consistent pilot FTZs and administrative divisions, improve the integrity and coordination of institutional innovation, and strengthen the integration of reform systems.
Contact
If you wish to obtain more information or assistance, please contact us through the following and talk to our professionals:
Email: 2355725105@qq.com
Tel: +86-755-82143410/86-13530066130
Wechat:13530066130