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Q&A on 15% CIT Incentive in Hainan

Q&A on 15% CIT Incentive in Hainan

  1. Who can enjoy the 15% corporate income tax incentive in Hainan?

    Enterprises that meet the following conditions can enjoy the 15% corporate income tax incentive in Hainan:
    (1) Registered in Hainan Free Trade Port;
    (2) Conduct substantive operation in Hainan Free Trade Port;
    (3) The main business of the enterprise falls in the encouraged industries of Hainan Free Trade Port, and the main business income accounts for 60% or more of the total income of the enterprise.

  2. Which industries are encouraged in Hainan?

    The encouraged industries in Hainan Free Trade Port mainly include the encouraged industries listed in the "Guiding Catalogue for Industrial Structure Adjustment (2024 Edition)", the industries listed in the "Catalogue of Encouraged Foreign Investment Industries (2025 Edition)", and the industries listed in the "Catalogue of Newly Added Encouraged Industries in Hainan Free Trade Port (2024 Edition)".

  3. What conditions must be met for substantive operation?

    Substantive operation in Hainan Free Trade Port shall meet the following conditions:

    (1)
    The enterprise has fixed production and operation sites, necessary production and operation equipment and facilities in Hainan Free Trade Port, and their main production and operation locations are in Hainan Free Trade Port, or institutions that implement substantial comprehensive management and control of production and operation are in Hainan Free Trade Port.

    (2)
    The enterprise has employees that meet the needs of production and operation working in Hainan Free Trade Port. The wages of the employees are paid through the bank account opened by the enterprise in Hainan Free Trade Port. According to the size of the enterprise and the employees, at least 3 (inclusive) to 30 (inclusive) employees must reside in Hainan Free Trade Port for a cumulative total of 183 days within a tax year.

    (3)
    The enterprise’s accounting vouchers, accounting books, financial statements and other accounting archives are stored in Hainan Free Trade Port, and its basic deposit account and bank accounts for main business settlements are opened in Hainan Free Trade Port.

    (4)
    The property that the enterprise owns or has the right to use and actually uses is located in Hainan Free Trade Port and matches the production and operation of the enterprise.

  4. How to claim for the 15% corporate income tax incentive in Hainan?

    Qualified enterprise may declare and enjoy the 15% corporate income tax incentive during quarterly prepayments and the annual tax settlement. The relevant documents shall be retained for future inspection.

KAIZEN Group is equipped with experienced and highly qualified professional consultants and is therefore well positioned to provide professional advices and services in respect of the formation and registration of company, application for various business licences and permits, company compliance, tax planning, audit and accounting in China. Please call and talk to our professional consultants for details.

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