A key policy granted by the central government to the Hainan Free Trade Port is the reduced corporate income tax rate of 15% for businesses in encouraged industries.
Currently, businesses can enjoy these tax incentives by self-assessment, self-declaration, and retaining relevant documentation for future reference. This means companies must determine on their own whether they meet the criteria based on their industry and operations, and if they qualify, they can apply for the tax incentives within the prescribed time frame according to tax laws.
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During the implementation process, many businesses have reported that some items in the directory are described in highly technical and general terms, making self-assessment challenging.
In response to these concerns and to facilitate better implementation of the “Directory of Encouraged Industries in the Hainan Free Trade Port,” the commission has developed the “Guidelines for Defining the Encouraged Industries in the Hainan Free Trade Port (2020 Edition).”
These guidelines aim to provide a clear and straightforward interpretation of each item in the directory, assisting relevant departments and businesses in determining whether their operations fall within the scope of encouraged industries.
Hainan Provincial Development and Reform Commission
November 7, 2022
Related article: Compilation of important policies for Hainan Free Trade Port (February 2024)
