Q:
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What are the main tax arrangements in this plan?
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A:
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Mainly include:
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Offshore duty-free policy for goods trade;
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Significantly reduce income tax, reduce indirect tax and promote sales tax.
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Q:
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What are the offshore duty-free policy for goods trade?
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A:
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Zero tariffs on imports of goods. The "Overall Plan" requires that the Hainan Free Trade Port policy and system should be implemented in steps and phases, and it is expected that the island-wide customs closure operation will be achieved by 2025;
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The trade of goods between Hainan and the Mainland is taxed on import and export. 1) In principle, goods from Hainan entering other regions in the Mainland will be subject to customs duties and value-added tax in accordance with import regulations; 2) Substantially processed products in Hainan enter the mainland with zero tariffs; 3) The postal goods enter the mainland from the Hainan Free Trade Port, are regulated according to regulations, and are taxed in accordance with regulations; 4) Simplify import management for the transportation means of Hainan Free Trade Port to the mainland.
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Q:
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What are the significantly lower income tax, degenerate lower indirect tax and implement sales tax?
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A:
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Preferential corporate income tax policy for enterprises operating in substance in Hainan Free Trade Port;
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The tax rate of the final draft of individual tax was reduced from 45% to 15%;
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By 2025, the merger of value-added tax, consumption tax, vehicle purchase tax, urban maintenance and construction tax and education surcharge and other taxes will be simplified, and sales tax will be levied on the retail link of goods and services to achieve degeneracy and reduce the proportion of indirect taxes.
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Q:
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What are the specific corporate income tax preferential policies?
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A:
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Preferential policy
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Conditions of application before 2025
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Conditions of application before 2035
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15% tax discount
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Register in Hainan
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Substantial operation in Hainan
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Encourage industry directory enterprises
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Registered in Hainan
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Substantial operation in Hainan
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Except for negative list industries
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Tax exemption for overseas direct investment
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Registered in Hainan
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Tourism, modern service industry, high-tech industrial enterprises
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One-time deduction or accelerated depreciation/amortization of capital expenditures
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Eligible capital expenditures are allowed to deduct or accelerate depreciation and amortization before the current one-time tax incurred
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Q:
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In Hainan, what are the most basic conditions for tax benefits?
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A:
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The "Overall Plan" emphasizes "substantial operation", and shell companies cannot enjoy tax benefits. The tax administration department will assess and warn the tax payment according to the principle of the location of the substantive business activities and the place of value creation, and formulate concise and easy-to-execute judgment standards for the substantive business location and location, strengthen the identification of tax evasion risks, prevent tax base erosion and profit transfer, and avoid becoming a "tax haven".
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FAQ
