Hainan suitable for frozen food import?

[Anonymous]

Upvote

Up

0

::

Hi all.

I’m about to set up trading company in China – of which main activity would be import of frozen meat and spices. I’m deciding where to set it up. Lately I’ve been getting recommendations for Hainan.

Thought, I have some concerns – especially about domestic logistics – and I would really appreciate your insights.

1. Being it an island, is logistic suitable enough for operating domestic retail to other provinces?

2. For wholesale – isn’t logistics from Hainan to other provinces an obvious disadvantage in comparison to coastal cities let’s say?

3. What is the usual route for goods distributed from Hainan to other provinces?

I would really appreciate all shared knowledge or experience.

Wish you all have a good day.

Agree0Disagree0

I have the same question (0) 0

Updated vote successfully

Topic

[Anonymous]

Upvote

Up

0

::

Hi Ian

Hainan’s location does present some challenges in terms of logistics for wholesale distribution, as it is not directly connected to China’s mainland transportation network. However, the Hainan Free Trade Port has implemented several policies and initiatives aimed at improving logistics infrastructure and reducing transportation costs. For instance, the port has established a “green channel”

http://www.e-to-china.com/tariff_changes/china_customs_practice/2010/0722/83757.html

for customs clearance, which allows for faster and more efficient import and export procedures. Additionally, Hainan has set up a logistics industry development fund to support the construction and expansion of logistics companies.

The most common mode of transportation for goods distributed from Hainan to other provinces is by sea. There are several seaports in Hainan that provide regular shipping services to other coastal cities in China. Some companies also use air transportation to move goods from Hainan to other provinces, which can be faster but more expensive.

Additionally, the Hainan Free Trade Port has established a “freight train express” service that connects Hainan with other parts of China, which may also be a viable option for some businesses.

The Guangdong-Hainan railway link includes a dedicated sea-crossing bridge and tunnel that connects the logistics hubs and distribution centres in Guangdong with Hainan. This allows for seamless transportation of goods between sea and rail transportation.

The freight train express service operates using this railway link and logistics infrastructure to provide a fast and efficient means of transporting goods between Hainan and other parts of China.

On March 23, 2022, the Guangdong-Hainan container train launched with the Bondex Group and support from China Railway Guangzhou Group Co., Ltd.

https://www.bondex.com.cn/EN/news/detail?pid=5472

It might also be worth considering the maximum personal income tax of 15% and corporate income tax of 15% on encouraged industrial enterprises as well as exemption from import duties, import value-added tax and consumption tax on imported goods purchased by island residents.

https://www.tropicalhainan.com/invest-in-hainan-what-are-the-60-key-policies-for-the-hainan-free-trade-port/

There is a lot to consider,

I hope this helps

[Anonymous]

Upvote

Up

0

::

Thanks a lot for your reply, that’s plenty of useful information.

Here some follow up:

1. Are there any conditions to be fulfilled in order to be taxed maximum 15% ?

2. Do WFOE consulting companies (marketing services) enjoy tax benefits too?

Thank you in advance and I really appreciate your help

[Anonymous]

Upvote

Up

0

::

Hi Ian

Regarding your second question first,

A WFOE trading and consulting company engaged in the import of frozen meat and spices may be eligible for preferential tax treatment under the Hainan Free Trade Port (HFTP) tax policy, provided it meets the relevant criteria.

To be eligible for preferential tax treatment, the company must meet the following conditions:

Be engaged in industries encouraged by the Chinese government, which includes the import and export of goods.

Have a registered capital of no less than RMB 1 million (approximately USD 150,000).

Employ a certain number of staff.

Have a fixed business premise in the HFTP.

Meet other requirements specified by the relevant authorities.

If the WFOE trading and consulting company meets these conditions, it may be eligible for a reduced corporate income tax (CIT) rate of 15% or lower.

However, it’s important to note that the preferential tax treatment is not automatically granted and is subject to application and approval by the relevant authorities.

It’s also important to note that the specific tax benefits and conditions for eligibility are subject to change and may be affected by various factors such as the company’s business scope, capital investment, and location within the HFTP. Therefore, it’s advisable to consult with a professional tax advisor or legal expert who can provide specific guidance on the company’s eligibility for preferential tax treatment in the HFTP.

To qualify for a lower personal income tax rate in China, including the 15% rate mentioned in the Hainan Free Trade Port (HFTP) tax policy, individuals may take advantage of various tax deductions and exemptions.

For example, certain types of income, such as income from self-employment or royalties, may be eligible for special tax deductions or exemptions. Additionally, individuals may be able to claim deductions for expenses related to education, healthcare, and housing.

To qualify for the 15% personal income tax rate in the HFTP, an individual would need to meet the relevant criteria set forth in the policy. The actual tax rate for PIT is determined based on the individual’s taxable income level and various deductions and exemptions.

I hope this helps

[Anonymous]

Upvote

Up

0

::

TropicalHainan wrote:

Hi Ian

Regarding your second question first,

A WFOE trading and consulting company engaged in the import of frozen meat and spices may be eligible for preferential tax treatment under the Hainan Free Trade Port (HFTP) tax policy, provided it meets the relevant criteria.

To be eligible for preferential tax treatment, the company must meet the following conditions:

Be engaged in industries encouraged by the Chinese government, which includes the import and export of goods.

Have a registered capital of no less than RMB 1 million (approximately USD 150,000).

Employ a certain number of staff.

Have a fixed business premise in the HFTP.

Meet other requirements specified by the relevant authorities.

If the WFOE trading and consulting company meets these conditions, it may be eligible for a reduced corporate income tax (CIT) rate of 15% or lower.

However, it’s important to note that the preferential tax treatment is not automatically granted and is subject to application and approval by the relevant authorities.

It’s also important to note that the specific tax benefits and conditions for eligibility are subject to change and may be affected by various factors such as the company’s business scope, capital investment, and location within the HFTP. Therefore, it’s advisable to consult with a professional tax advisor or legal expert who can provide specific guidance on the company’s eligibility for preferential tax treatment in the HFTP.

To qualify for a lower personal income tax rate in China, including the 15% rate mentioned in the Hainan Free Trade Port (HFTP) tax policy, individuals may take advantage of various tax deductions and exemptions.

For example, certain types of income, such as income from self-employment or royalties, may be eligible for special tax deductions or exemptions. Additionally, individuals may be able to claim deductions for expenses related to education, healthcare, and housing.

To qualify for the 15% personal income tax rate in the HFTP, an individual would need to meet the relevant criteria set forth in the policy. The actual tax rate for PIT is determined based on the individual’s taxable income level and various deductions and exemptions.

I hope this helps

Hey there,

Do you have any more details on the Hainan Free Trade Port (HFTP) tax policy or could you provide a link?

Best

Jared

[Anonymous]

Upvote

Up

0

::

Hi Jared/Ian

You can find the interpretation of the Hainan Free Trade Port Tax Policy – Personal Income Tax here:

https://www.tropicalhainan.com/ftp-business-forum/viewtopic.php?f=37&t=330&p=400#p400

Hope this helps

Patrick

[Anonymous]

Upvote

Up

0

::

Hi Jared/Ian

You can find the interpretation of the Hainan Free Trade Port Tax Policy Corporate Income Tax here:

https://www.tropicalhainan.com/ftp-business-forum/viewtopic.php?f=37&t=331&p=402#p402

Hope this helps, let me know if you have any further questions

Patrick

[Anonymous]

Upvote

Up

0

::

Thanks so much for the answers, it helps a lot

[Author]

Replies