Foreign driving licences and International Driving Permits (IDPs) are not recognised under Chinese law. If you want to drive legally in Hainan, you need a Provisional Driving Permit, issued by the Hainan Provincial Public Security Department specifically for foreign nationals.

The entire application can be completed online at hnslsjs.cn before you travel. The permit costs 10 yuan and is valid for up to 12 months. You collect the physical document in person at a vehicle management office on arrival in Hainan.

Before You Start: What You Need

Prepare the following before beginning your application:

• Passport (photo page and visa page)
• Overseas driving licence, front and back
• Chinese translation of your overseas driving licence, issued by a translation agency or notarised by a notary agency
• Note on the translation: The platform has a built-in reference translation tool, but it explicitly states this cannot be used as application material. You will need an official translation arranged separately before you apply.
• One recent 1-inch photo, half-length, bareheaded, colour, white background
• Email address, you will receive your account activation link and your approval notification here

Step 1: Register Your Account

Go to hnslsjs.cn and click Register in the top right corner. Select your preferred language (English, Russian, Japanese, or German) before registering.

The registration form asks for:

• Username and password
• Country of citizenship
• Passport number
• Mobile phone number: The system requires exactly 11 digits and does not accept international formats. All approval notifications go to your email address, not your phone, so the mobile number field has no practical role in the process. If you do not have a Chinese number and your overseas number cannot be made to fit 11 digits, any 11-digit sequence will pass the field validation.
• Email address (Mailbox)

After submitting, you will see a confirmation screen. Check your email immediately, a verification link is sent to activate your account. You must click this link within 2 hours before you can log in.

Step 2: Agree to Terms

Once logged in, click "Handling of temporary driving license" and work through the application. The first screen sets out the key conditions of the permit:

• The permit covers small cars and small automatic transmission cars rented in Hainan
• Validity cannot exceed your entry document validity or your overseas licence validity, whichever is shorter, and cannot be extended once expired
• The permit is valid within Hainan Province only. It does not allow driving on the Chinese mainland
• The permit must be carried at all times together with your overseas driving licence and its Chinese translation

Step 3: Fill in Personal Information

This is the most detailed step. Two fields will catch you out:

Your name: The form defaults to "Whether to use the bank of names: “Yes”, this forces you to pick your name from a pre-set dropdown list of transliterated names. Switch this to No to get a free-text field where you can type your name as it appears on your passport.

Your phone number: See the note in Step 1, enter exactly 11 digits.

The rest of the form asks for:

• Sex and date of birth
• Country of citizenship
• Passport number and validity dates
• Visa and/or residence permit validity dates: If you are entering Hainan under the 30-day visa-free policy and do not have a visa, enter your intended arrival and departure dates in the visa date fields to complete the form.
• Driving licence issuing country, number, and validity dates
• Vehicle type approved by your licence
• Whether your licence restricts you to automatic transmission vehicles
• Whether you are bringing your own vehicle into China
• Reason for application: Study, Work, Tourism, Competition, or Other
• Flight or ship arrival point (Haikou Meilan Airport or Sanya Phoenix Airport — optional)
• Vehicle management office where you will collect your permit on arrival

Note: The system's driving licence issuing country list does not include all countries. If your licence-issuing country does not appear in the dropdown, you may not be able to complete the online application, contact the platform's consulting service for guidance.

Step 4: Complete the Online Learning Module

This step is mandatory and cannot be skipped. The "Submission of application" button remains locked until your learning progress reaches 100%.

There are 20 video lessons, all in English:

• Lessons 1–2: Driving qualification, provisional permit vs full Chinese licence
• Lesson 3: Vehicle types
• Lesson 4: Traffic signs
• Lesson 5: Road surface markings
• Lesson 6: Traffic lights and traffic police hand signals
• Lessons 7–8: Traffic rules
• Lesson 9: Prohibited areas for vehicles
• Lesson 10: Right of way at intersections
• Lesson 11: Right of way when overtaking
• Lesson 12: Vehicles with right of way and protecting other drivers
• Lesson 13: Safe speed
• Lesson 14: Safe following distance
• Lesson 15: Punishments for traffic violations
• Lesson 16: Allowed and restricted parking
• Lesson 17: Driving on highways
• Lesson 18: Driving in unfavourable conditions
• Lesson 19: Dealing with traffic accidents
• Lesson 20: Tips for travelling in China

Set aside sufficient time before you travel to work through all 20 lessons, each video is around 2-3 minutes long. The good news: if your application is rejected and you need to reapply, you do not have to redo the video courses.

Step 5: Upload Your Documents

Upload the following (PNG, JPG, or JPEG format, maximum 5MB each):

• Passport information page
• Visa page
• Overseas driving licence, front
• Overseas driving licence, back
• Chinese translation of your overseas driving licence (official translation only, the platform's built-in tool generates a reference translation that cannot be submitted)
• Photo, 1-inch, recently taken, half-length, bareheaded, colour, white background
• Other supporting materials, only required if your application reason is an organised tour, competition, or social activity (certificate from the relevant Chinese authority required)

Step 6: Submit and Wait for Review

Once all 20 lessons are complete and documents uploaded, submit your application. Review takes up to two working days. You will receive an email notifying you whether your application has been approved or rejected.

If rejected, you can reapply using the same account without completing the video lessons again.

Step 7: Collect Your Permit on Arrival

On arrival in Hainan, go to the vehicle management office you selected during your application to collect the physical permit. Offices cover all major areas of the province: Haikou, Sanya, Danzhou, Yangpu, Qionghai, Wenchang, Wanning, Ding'an, Tunchang, Chengmai, Lingao, Wuzhishan, Dongfang, Baisha, Changjiang, Ledong, Lingshui, Baoting, and Qiongzhong.

Once issued, carry the permit at all times when driving, together with your overseas licence and its Chinese translation. The permit is valid within Hainan Province only.

Quick Reference

• Platform: hnslsjs.cn
• Cost: 10 yuan
• Validity: Up to 3 months (extendable to 12 months for longer stays)
• Valid in: Hainan Province only
• Languages: English, Russian, Japanese, German, Chinese
• Review time: Up to 2 working days
• Mutual recognition countries: France, Serbia, Belgium, UAE, nationals of these countries do not need a provisional permit

Related article: Hainan’s Work Permit Categories Explained: A, B, and C

Hainan's Work Permit Categories Explained: A, B, and C - TropicalHainan.com

Hainan classifies foreign workers into three categories A, B, and C, with different qualifying routes, document requirements, and age rules for each. This guide covers what the 2025 provincial guidelines actually say …

www.tropicalhainan.com

A friend of mine, Gerhard, was diagnosed with stage 4B colorectal cancer in February. He's still working, still fighting, and refuses to give up, but his medical insurance has refused to renew, leaving him with chemotherapy bills of 18,000 RMB per session, twice a month.

He has a wife and daughter here. His salary doesn't cover the costs. He just needs a hand from people who understand what it's like to be far from home and facing something this big.

If you can help, even a small amount makes a difference. Scan either QR code below to donate via Alipay or WeChat Pay.

Even a share helps.

Thank you!!!

Last updated: April 2026

Overview

Hainan has been China's primary winter breeding ground for decades, but what was once a seasonal research base has been transformed into one of the country's most ambitious agri-tech initiatives. The "Nanfan Silicon Valley" — first proposed by President Xi Jinping during his April 2018 visit to Hainan — is now a fully-fledged national strategic project, written into the Central Government's No. 1 Document for 2025 and given formal planning status through 2030. The December 2025 island-wide customs closure has added a new dimension, opening the door to genuinely international seed trade and research collaboration at a scale not previously possible.

For foreign businesses and researchers, the seed industry represents one of Hainan's most distinctive and open investment sectors — with regulatory reforms actively designed to attract international participation.

Why Hainan for Seed Research?

Hainan's natural advantages for seed breeding are well established and remain the foundation of the industry:

• The warm winter and spring climate shortens new crop variety breeding cycles by 30% to 50% compared to northern China
• Year-round growing conditions allow multiple crop generations per year, dramatically accelerating variety development
• The island holds one of China's richest biodiversity reserves, providing extensive native germplasm resources
• The Nanfan Scientific Research and Breeding Reserve covers approximately 268,000 mu and has long served as China's primary southern breeding base — more than 70% of the country's cultivated crop varieties have been developed here at some stage

The Strategic Framework — What Nanfan Silicon Valley Actually Means

In January 2024, five national ministries — Agriculture and Rural Affairs, NDRC, Ministry of Finance, Ministry of Natural Resources, and General Administration of Customs — jointly issued the National Nanfan Silicon Valley Construction Plan (2023–2030). This gives the initiative four official designations:

• National-level seed industry innovation base
• New engine for high-quality seed industry development
• International platform for seed science and technology cooperation
• Pilot zone for deepening reform and opening up in the seed industry

The plan sets two milestone targets: by 2025, establishment as a national-level innovation base with significantly enhanced international influence; by 2030, full realisation as a nationally-serving Nanfan Silicon Valley.

Research Infrastructure — What Has Been Built

The scale of investment in research infrastructure since 2020 has been substantial.

Yazhou Bay National Laboratory is the centrepiece — a state-level strategic science and technology facility focused on crop breeding. It has established 10 academician workstations, attracted 25 research institutes, and assembled more than 2,000 high-level talent in the Nanfan field. In 2024 it launched "Fengdeng," China's first large language model for the seed industry, followed in 2025 by specialised models for rice breeding and genomics. In December 2024 it established the Yazhou Bay Biobreeding Consortium together with 20 innovation entities including China Seed Group.

Major platforms now operational include the National Nanfan Crop Phenotype Research Facility, the National Wild Rice Germplasm Resource Garden (preserving over 10,000 wild rice accessions), the National Salt-Alkali Tolerant Rice Technology Innovation Centre in Sanya, the Tropical Crop Biobreeding National Key Laboratory, and the Key Laboratory for Gene Editing Innovation and Application. A Sanya electron accelerator mutagenesis breeding laboratory has cut new variety selection cycles from 5–7 years to 2–3 years.

Twenty-one agricultural research institutes and universities have established a presence in Sanya Yazhou Bay Science and Technology City, including the Chinese Academy of Agricultural Sciences and China Agricultural University.

Industry Scale — Current Numbers

The commercial seed industry around the Nanfan base has grown rapidly:

• Over 2,800 seed innovation enterprises are now based in Yazhou Bay Science and Technology City
• 2024 Nanfan seed industry output exceeded RMB 12 billion, up 50% year-on-year
• Output grew a further 11% in 2025
• 9 of China's top 20 seed companies have established a presence
• In December 2025 the Yazhou Bay Modern Seed Industry Cluster was formally recognised as one of Hainan's first RMB 10 billion-level priority industrial clusters

International companies are now present. France's Limagrain — one of the world's largest seed groups — established a presence in 2025. Corteva (US) is also represented. The customs closure is expected to accelerate further international investment.

A notable new service model has emerged: seed Contract Research Organisations (CROs), providing purity identification, DNA extraction and variety testing services to research units. Twenty seed CRO service institutions have been formally recognised, with 16 CRO service platforms and over 60 CRO service providers now operating in Sanya.

Recent Scientific Breakthroughs

Several results from Nanfan-based research are worth noting for context:

Salt-alkali tolerant soybean varieties developed at Yazhou Bay Laboratory are averaging over 300 kg per mu — significantly above China's national average of 150 kg and the US average of 225 kg. Salt-alkali tolerant rice trials have reached peak yields of 327.2 kg per mu, a 64% increase over controls under 5‰ saline conditions. Maize single-haploid breeding technology developed here has been adopted across China's major maize breeding institutions and extended to over 10 other crops. An AI-powered smart breeding platform developed jointly by the Chinese Academy of Agricultural Sciences and Alibaba is now operational.

The Regulatory Framework — Key 2025 Changes

This is where the most significant changes for foreign businesses and researchers have occurred.

Seed Import and Export Management Regulations for the Hainan FTP Passed by the Hainan Provincial People's Congress Standing Committee on 28 December 2024, in force from 1 January 2025.

The headline change: Hainan has become the first province in China to take over approval authority for seed imports and the introduction of livestock genetic resources from overseas — previously handled centrally by the Ministry of Agriculture and Rural Affairs. Key provisions:

• Seed import approvals must be issued within 18 working days
• Production and operating licences issued within 15 working days
• Imported seeds are restricted to use within the FTP (they cannot be distributed to the mainland without further approvals)
• A dedicated green customs channel has been established for seed materials

Seed Import and Export Production and Operating Licence Management Measures (Revised Edition) Issued by the Hainan Provincial Government Office (琼府办〔2025〕37号), in force from 8 September 2025.

Key simplifications:

• Registration location restrictions removed — businesses no longer need to be registered locally to apply
• Office space area requirements eliminated
• Leased premises now acceptable for licence conditions
• Approval time limit: 10 working days
• Import approval timelines cut by more than 50% compared to previous rules

Customs Facilitation Measures Haikou Customs has introduced five nationally pioneering facilitation measures for seed and germplasm materials, including cross-customs-district conditional release for incoming seedlings and exemption from port quarantine sampling for certain seed types. Seedling survival rates have improved to above 95% as a result.

In April 2025 the Global Animal and Plant Germplasm Resources Introduction and Transit Base Service Centre officially opened, providing a cross-department single-window service for germplasm imports. This has been recognised as one of Hainan FTP's 22nd batch of institutional innovation cases.

Key Investment and Research Locations

The main hubs for seed industry activity in Hainan are:

Sanya Yazhou Bay Science and Technology City — the primary hub, home to Yazhou Bay National Laboratory, the majority of research institutes, and the largest concentration of seed enterprises. This is where most international companies have established their Hainan presence.

Nanfan Technology City (Sanya) — the commercial and IP trading component of the ecosystem.

An Ma Yang, Lingshui — part of the core breeding reserve area.

Bao Kong Yang, Ledong — part of the core breeding reserve area.

Global Animal and Plant Germplasm Resources Introduction and Transit Base — the designated international germplasm entry point, handling the quarantine, temporary storage and distribution of imported genetic material.

What This Means for Foreign Businesses and Researchers

The combination of the customs closure, devolved approval authority, and streamlined licensing creates a meaningfully different operating environment from 2020. Foreign seed companies, plant breeders, and agricultural research institutions now have a clearer and faster pathway to conduct research and establish commercial operations in Hainan than anywhere else in China.

The restrictions to note: imported seeds and germplasm remain restricted to use within the FTP unless further mainland approvals are obtained. The 60% revenue threshold and substantive operations requirements for CIT incentives apply equally to seed industry enterprises. Intellectual property protections have been strengthened — Hainan has an established IP court and a dedicated seed industry IP special zone — but enforcement should be verified with qualified legal counsel before transferring proprietary germplasm.

The seed industry also sits squarely within the Encouraged Industries Catalogue (2024 Edition), qualifying enterprises for the 15% CIT rate and zero-tariff treatment on processed goods entering the mainland.

This post is for informational purposes only and does not constitute legal, regulatory or investment advice. Verify all regulatory details with the relevant authorities before making business decisions.

Last updated: August 2025 Valid through: 31 December 2027

Overview

The Hainan Free Trade Port offers three corporate income tax (CIT) incentives for qualifying enterprises. All three remain in force through 31 December 2027.

Incentive 1 — Reduced 15% CIT Rate (Encouraged Industries)

Enterprises registered in the Hainan FTP and engaged in substantive operations in encouraged industries pay CIT at 15%, versus the standard 25% rate.

Who qualifies?

• Resident enterprises registered in the FTP
• Branches of resident enterprises located within the FTP
• Institutions and establishments of non-resident enterprises located within the FTP

Your primary business must fall within the FTP Encouraged Industries Catalogue, and income from that primary business must account for at least 60% of your total revenue.

What counts as "substantive operations"?

The enterprise must exercise real management and control, covering production, personnel, accounts, and assets, within the FTP. Specifically:

• If your enterprise is registered in the FTP with no branches outside it, all production, operations, personnel, accounting, and assets must be located within the FTP.
• If your enterprise is registered in the FTP but has branches outside it, the head office must exercise substantial and comprehensive management and control over all branch operations.
• If your enterprise is registered outside the FTP but has a branch inside it, that branch must have genuine production and operational functions, with corresponding operating income, employee compensation, and total assets within the FTP.

Any enterprise where production, operations, personnel, accounting, or assets are entirely outside the FTP does not qualify.

Do branches qualify for the 15% rate?

• Enterprise headquartered inside the FTP: 15% applies to the head office and any FTP-based branches only. Branches outside the FTP are excluded.
• Enterprise headquartered outside the FTP: 15% applies only to qualifying FTP-based branches. The head office and non-FTP branches are excluded.

How to claim

This incentive uses a self-assessment model — enterprises determine eligibility themselves, declare accordingly, and retain supporting documentation. It can be claimed at both quarterly prepayment and annual settlement stages.

Retain the following documents:

• Evidence that your primary business falls within the Encouraged Industries Catalogue, and that this business accounts for 60%+ of total revenue
• Evidence of substantive operations: total assets, total revenue, total employees, total salary expenses, and the proportion of each held within the FTP
• Any other materials confirming eligibility

Incentive 2 — CIT Exemption on Overseas Direct Investment Income (Tourism, Modern Services, High-Tech)

Enterprises in the tourism, modern services, and high-tech industries are exempt from CIT on income derived from new overseas direct investments made between 1 January 2020 and 31 December 2027.

What income qualifies?

• Operating profits from newly established overseas branches
• Dividends from newly established overseas subsidiaries where the FTP enterprise holds 20% or more equity

One additional condition: the statutory CIT rate in the invested country or region must be at least 5%.

What counts as "new overseas direct investment"?

• Establishing new overseas branches
• Setting up new overseas companies
• Increasing capital in existing overseas enterprises
• Acquiring equity in overseas enterprises

All investments must have been made between 1 January 2020 and 31 December 2027.

How to claim

Claimed at annual settlement stage. Retain the following:

• Evidence that your enterprise falls within tourism, modern services, or high-tech industries
• Details of the qualifying overseas investment: registration or approval documents, investment date, income type, and income attribution period
• Any other materials confirming eligibility

Incentive 3 — One-Off Deduction or Accelerated Depreciation/Amortisation on Newly Purchased Assets

FTP enterprises can accelerate the tax treatment of newly purchased fixed assets and intangible assets.

The two tiers:

• Unit value ≤ RMB 5 million: The full cost may be deducted in the current year as a one-off expense. Annual depreciation or amortisation is not required.
• Unit value > RMB 5 million: The enterprise may shorten the depreciation or amortisation period, or adopt an accelerated depreciation or amortisation method.

Note: "Fixed assets" here refers to fixed assets other than buildings and structures. For intangible assets, the deduction or accelerated amortisation begins in the year the asset becomes available for use. For self-developed intangible assets, the relevant date is when the asset reaches its intended purpose.

How to claim

Can be claimed at both quarterly prepayment and annual settlement stages. Retain the following:

• Proof of asset acquisition date (invoices, delivery records, completion settlement statements, or for self-developed assets, a statement confirming the date the asset reached its intended purpose)
• Accounting records for the relevant assets
• A reconciliation ledger showing the difference between tax treatment and accounting treatment

Note: Second-tier branches within the FTP using the audited collection method, and non-resident enterprise institutions/establishments, are also eligible for this incentive.

What this means in practice

These three incentives form the core of the FTP's corporate tax offer. The 15% rate is the headline figure, but the overseas investment exemption and accelerated depreciation rules are often more valuable for businesses actively investing and expanding. All three were extended in early 2025 and local implementation guidance was confirmed by the Hainan Tax Bureau in August 2025 — the mechanics are unchanged from the original framework.

The documentation requirements are strict and non-negotiable — tax authorities expect these records to be retained and available on request. Self-assessment means the burden of proof sits entirely with the enterprise.

This post is for informational purposes only and does not constitute tax advice. Consult a qualified tax professional for guidance specific to your situation.

Last updated: September 2025 Valid through: 31 December 2027

Overview

The Hainan Free Trade Port caps the effective personal income tax (PIT) burden at 15% for qualifying high-end and in-demand talents. Any PIT liability above 15% of taxable income is waived. China's standard PIT rates run from 3% to 45% for employment income, making this one of the most competitive talent tax incentives in Asia.

The original 2020 policy was extended in January 2025 through to 31 December 2027. The extension was accompanied by a revised talent list management system (August 2025) and detailed implementation rules from five provincial departments (September 2025).

Who Qualifies?

There are two qualifying categories.

Category 1 — High-End Talents

You qualify if you meet all three of the following:

• You are recognised as a talent by a talent management authority at any level in Hainan Province, or your income from work in the FTP exceeds RMB 300,000 in a tax year
• You are employed by an enterprise registered and substantively operating in the Hainan FTP, under a labour contract or employment agreement of at least one year
• You meet the residency requirement (see below)

Category 2 — In-Demand Talents

You qualify if your field of expertise falls within the Catalogue of In-Demand Talents for Hainan FTP Industries, and you meet the same employment and residency conditions as above.

The Residency Requirement — Important 2025 Update

This is where the rules changed significantly in 2025 and where you need to pay close attention.

General rule: You must have accumulated at least 183 days of residence in the Hainan FTP within the tax year.

How 183 days is now calculated (new from 2025):

Under the old rules (2022), 183 days meant 183 days of actual physical presence on the island. In practice this was difficult for executives, sales staff, and project personnel who needed to travel frequently.

Under the new rules (effective 1 January 2025), the 183-day count can include reasonable off-island days for business travel, holidays, and training — provided your actual physical presence is at least 90 days. This is not a reduction of the threshold to 90 days — the 183-day total requirement remains. What changes is that reasonable off-island time can count toward it, subject to a hard floor of 90 days actual presence.

To count off-island days, you must have legitimate reasons, proper approval from your employer, and complete records of your movements in and out of the island.

Both arrival and departure days count as one full day each. Multiple trips within the year are aggregated.

Special rule for certain industries:

Professionals in aviation and aerospace, shipping, and offshore oil and gas exploration often cannot meet even the 90-day actual residence floor due to the nature of their work. A separate pathway exists for these individuals: they do not need to meet the residency requirement, but must instead pay basic pension insurance continuously for at least six months in the tax year (including December), hold a labour contract of at least one year with a qualifying FTP enterprise, and obtain formal recognition from Hainan's human resources and social security authority by submitting an application through their employer before 1 March each year.

⚠️ Caveat on the list-based system: Official guidance states that eligible talents are identified automatically through data sharing between government departments — talent recognition authorities push names to the provincial human resources authority, and individuals with annual income above RMB 300,000 are identified through tax records. In principle, no individual application for talent identification is required. However, implementation of this system has evolved over time and the 2025 rules introduce new steps — particularly for those whose actual residence is between 90 and 182 days, who must submit supporting materials and an individual declaration through the provincial government service platform by 30 June each year. If you believe you qualify, do not assume you are automatically on the list — verify your status through official channels and retain all relevant documentation.

What Income Is Covered?

The 15% cap applies to the following income types derived from the Hainan FTP:

Comprehensive income — wages and salaries from FTP employment, remuneration for labour services performed in the FTP, author's remuneration from works published in the FTP, and royalties from intellectual property rights exercised in the FTP.

Business income from production or business operations carried out in the FTP.

Talent subsidy income recognised by Hainan Province — where subsidy income relates to employment it is treated as comprehensive income; where it relates to business operations it is treated as business income.

How the Tax Reduction Is Calculated

The incentive works by calculating what you would owe under standard national rates, then waiving the portion above 15% of your taxable income. The tax authority system calculates this automatically when you file your annual settlement — you do not need to calculate it manually.

For reference, the formulas are:

For resident individuals — comprehensive income: Reduction = (Tax payable on comprehensive income − Taxable comprehensive income × 15%) × Hainan-sourced comprehensive income ÷ Total comprehensive income

For resident individuals — business income: Reduction = (Tax payable on business income − Taxable business income × 15%) × Hainan taxable business income ÷ Total taxable business income

For non-resident individuals — wages and salaries: Reduction = (Tax payable on wages/salaries − Taxable wages/salaries × 15%) × Hainan wages/salaries ÷ Total wages/salaries

For non-resident individuals — labour services, author's remuneration, royalties: Reduction = Hainan tax payable − Hainan taxable income × 15%

In practice: when filing your annual PIT settlement through the Personal Income Tax app or the Natural Person Electronic Tax Bureau, select Hainan Province as your filing location and the system will apply the reduction automatically.

How to Claim

The incentive is claimed at annual PIT settlement, not at source. Key deadlines:

• Business income settlement: 1 January to 31 March of the following year
• Comprehensive income settlement: 1 March to 30 June of the following year

Non-resident individuals who cannot enter China may authorise an agent to file on their behalf, or apply for advance eligibility recognition at least 30 days before departing China.

Compliance and Documentation

Your employer must be substantively operating in the Hainan FTP — shell companies cannot be used to access this incentive, and the 2025 rules explicitly require that business activity matches the scale of the benefit being claimed.

Retain the following for five years:

• Labour contract or employment agreement of at least one year with your FTP-registered employer
• Records of your days in and out of the island if claiming off-island days toward the 183-day count — including employer approval records and travel documentation
• Any talent recognition certificates or income verification materials

Providing false information, abusing the incentive, or failing compliance checks will result in the benefit being cancelled for the relevant year, back-taxes and surcharges being levied, and in serious cases referral to a multi-department credit penalty system.

How to Get Help

• Hainan provincial services hotline: 0898-12345
• National tax services hotline (Hainan): 0898-12366
• Personal Income Tax app — annual filing and automatic calculation
• "Hainan Taxation" official WeChat account

Looking Ahead — Post-Customs Closure

Hainan completed its island-wide customs closure in late 2025. The current policy runs to end of 2027, which aligns with the post-closure transition period. The longer-term direction, signalled in the Hainan FTP Master Plan, is to move toward a three-bracket progressive rate of 3%, 10%, and 15% applying to all individuals resident in the FTP for 183 days or more — expanding well beyond the current high-end talent focus. No timeline for this has been confirmed.

This post is for informational purposes only and does not constitute tax advice. Consult a qualified tax professional for guidance specific to your situation.

Hainan FTP Encouraged Industries Catalogue — Complete Guide (Current Edition)

Last updated: April 2026 Core catalogue in force: 1 March 2024 Foreign investment catalogue update in force: 1 February 2026

Why This Catalogue Matters

The Encouraged Industries Catalogue is the gateway to two of the Hainan FTP's most significant incentives:

• The 15% corporate income tax rate (versus the standard 25%) — only available to enterprises whose primary business falls within the catalogue, and where that business accounts for at least 60% of total revenue
• Zero-tariff treatment on processed goods entering the Chinese mainland — where goods are produced by encouraged industry enterprises and either contain no imported materials, or where imported materials have been processed to add at least 30% value within the FTP

Getting catalogue classification right is not optional — it is the foundation of your entire tax position in Hainan.

The Current Framework — Two Complementary Catalogues

There is no single "2025 Edition" catalogue. The current system consists of two documents that work together:

For all enterprises (domestic and foreign-invested): The Hainan FTP Encouraged Industries Catalogue (2024 Edition), issued jointly by the National Development and Reform Commission, Ministry of Finance, and State Taxation Administration. In force from 1 March 2024. This replaced the 2020 Edition, which expired on 31 December 2024.

For foreign-invested enterprises specifically: The Catalogue of Encouraged Industries for Foreign Investment (2025 Edition) — Hainan Province Section, issued by the NDRC and Ministry of Commerce. In force from 1 February 2026. This replaced the 2022 Edition. Foreign-invested enterprises use this alongside the 2024 Edition.

Structure of the 2024 Edition

The catalogue has two parts:

Part 1 — National Catalogues: Encouraged industries listed in the national Catalogue for Guiding Industry Restructuring and the national Catalogue of Encouraged Industries for Foreign Investment. The most current versions of those national catalogues apply automatically.

Part 2 — Hainan-Specific Additions: 14 industry categories, 176 items. This is expanded from 143 items in the 2020 Edition — a net addition of 33 items, concentrated in cultural tourism, new energy, pharmaceuticals and healthcare, aerospace, and ecological protection.

The 176 Hainan-Specific Items (2024 Edition)

Items marked (New) were added in the 2024 Edition. Items marked (Expanded) were broadened from the 2020 Edition.

1. Agriculture, Forestry, Animal Husbandry and Fishery (4 items)

1. Construction and operation of aquatic product quality assurance systems
2. Construction of tropical economic forest bases
3. Protection and sustainable utilization of animal and plant medicinal materials (excluding items in the restricted or eliminated categories of the national restructuring guidance catalogue)
4. Agri-solar complementary and agro-industrial integrated development (New)

2. Manufacturing (43 items) 5. Demonstration application of deep-sea aquaculture, processing industries and equipment 6. Processing of deep-sea fish oil, protein powder, chitin and other aquatic products 7. Deep processing of imported foods including beef and mutton, milk, frozen products and edible bird's nests 8. Deep processing of tropical agricultural and forestry products 9. Production of pharmaceuticals and green building materials, and deep processing of imported agricultural and forestry products (excluding items subject to national quota management) 10. Machine-made sand production (integrated stone-to-sand production of 1 million cubic metres or more annually, using waste rock, tailings or construction waste encouraged) 11. Research, development, manufacturing, maintenance and repair of yachts and cruise ships, and development and construction of new energy and clean energy vessels 12. Modulation and application of low-sulphur oil and biomass oil 13. Research, development and application of biomass materials 14. Deep processing of organic chemical raw materials (excluding restricted and eliminated categories) 15. Development and production of cosmetics (mercury content not exceeding one part per million) 16. Manufacturing of special-purpose vehicles (excluding restricted and eliminated categories) 17. Manufacturing of general equipment for new energy production vehicles 18. Manufacturing of off-road recreational vehicles and components (new energy) 19. Manufacturing of motorcycles and key components 20. Research, development and production of teaching aids and instruments 21. Research, development and production of protective and environmentally friendly building and marine coatings 22. Research, development and manufacturing of marine renewable energy equipment (New) 23. Research and application of aerospace food, aerospace biomedicine and aerospace medicine (New) 24. Research, development and application of deep-sea search and rescue equipment and technology (New) 25. Research, development and manufacturing of special dry-type transformers, reactors, converters, reactive power compensation equipment, and ultrafiltration membrane water purification equipment 26. Design, processing and production of traditional handicrafts 27. Research, development and production of medical instruments and devices with independent intellectual property rights 28. Research, development and production of medical devices and emergency medical protective supplies (excluding restricted and eliminated categories) (New) 29. Manufacturing of precision mechanical watches, mechanical clocks and components, and smart watches and components 30. Processing of precious jade and mosaic manufacturing of jewellery 31. Research, development, manufacturing, inspection, maintenance and supporting industries for offshore oil exploration and production equipment 32. Research, development, manufacturing, maintenance and operational services for aviation aircraft, engines and airborne products, plus aircraft modification, disassembly and remanufacturing (Expanded) 33. Research, development, manufacturing and maintenance of space transportation systems, spacecraft and ground facilities, and exploration and application of space resources (Expanded) 34. Research, development and production of special foods (infant formula, health foods, foods for special medical purposes) (New) 35. Research, development and production of generic pharmaceuticals (excluding restricted and eliminated categories) (New) 36. Production and operations by marketing authorisation holders and medical device registrants (New) 37. Manufacturing of advanced pharmaceutical and biological preparation equipment (New) 38. Research, development and manufacturing of offshore wind turbines of 8MW and above (New) 39. Operation and maintenance of offshore wind power generation (New) 40. Research, development and manufacturing of new energy storage technology and equipment (New) 41. Production and manufacturing of general components for vehicles, vessels and engineering machinery (excluding restricted and eliminated categories) (New) 42. Manufacturing of diving and salvage equipment (New) 43. Research, development and manufacturing of child safety seats (New) 44. Manufacturing of intelligent manufacturing instruments, electrical wire and cable, optical cable and electrical equipment (excluding restricted and eliminated categories) (New) 45. Research, development and manufacturing of optoelectronic technology and products including optical fibre preforms, LEDs, optical fibre and connectors (New) 46. Research, development of cascade utilisation products and technology for new energy vehicle power batteries (New) 47. Development and production of beverages, and comprehensive utilisation of fruit residue, tea residue, coffee grounds and similar materials (excluding restricted and eliminated categories) (New)

3. Construction (9 items) 48. Construction and maintenance of ports 49. Construction and maintenance of coastal deep-water channels, breakwaters and inland waterways 50. River, lake and reservoir water system connectivity and rural water system remediation 51. Operation and maintenance of space launch facilities (New) 52. Construction and maintenance of coastal public anchorages 53. Construction of biodiversity conservation projects 54. Construction of outdoor sports infrastructure including sports craft wharves 55. Research, development, production and demonstration of renewable energy building integration 56. Offshore oil and gas projects

4. Wholesale and Retail (8 items) 57. Construction of agricultural and forestry product trade and marketing centres 58. Operation and digital transformation of brand experience stores, shopping centres, chain supermarkets, chain convenience stores, smart stores, theme malls, community commerce, large wholesale markets and professional commodity wholesale markets (Expanded) 59. Series of services for agricultural and forestry products entering supermarkets 60. Bulk commodity trade (excluding items subject to national quota management) 61. Trade brokerage, agency and services 62. New offshore international trade (technology-advanced service type) (Revised) 63. International seed trade 64. Construction and operation of auction companies

5. Transport, Warehousing and Postal Services (18 items) 65. Road passenger transport, cruise, yacht and pleasure-boat industries and services 66. Railway passenger and cargo transport, rail-water combined transport, Yuehai ferry rail transport, and high-speed railway express delivery 67. Agricultural, forestry and fishery product, food and pharmaceutical cold chain logistics and distribution centres 68. Ship registration, management, maintenance, inspection and related services; cruise and international shipping; aircraft supply; marine fuel and LNG supply; bonded aviation fuel and bonded LNG refuelling services (Expanded) 69. Supply of special fuels and gases for aerospace use (New) 70. Water passenger and cargo transport, port handling, storage, tugboat and tally services, and cruise port and transport services 71. International non-vessel operating common carrier business 72. International courier and logistics 73. International air cargo services (New) 74. International route calling, container transit, container stuffing and less-than-container-load services 75. International aviation and aviation logistics, trading markets and derivative business 76. Short-distance general aviation transport 77. Drone logistics delivery applications 78. Research, development and operation of global consolidation and distribution systems (New) 79. International freight forwarding, ship agency, customs declaration, inspection and related agency services 80. Integrated logistics services including warehousing, transport, freight forwarding, sorting, packaging, handling, distribution, reverse logistics and information processing 81. Research, development and operation of new energy vehicle charging and battery-swap infrastructure and smart systems (New) 82. Operation of urban smart parking facilities and research, development and operation of smart parking systems (New)

6. Accommodation and Catering (3 items) 83. Hotels, featured small and medium-sized family hotels, and rural homestay 84. Development and promotion of shared residence products including timeshare, online leasing and house sharing 85. Special catering brand development and chain operation

7. Information Technology, Software and IT Services (21 items) 86. 5G and 6G technology development and commercial application 87. Research, development and application of general-purpose and high-end processors, memory, operating systems, databases and other foundational hardware and software 88. Research, development and application of software and hardware product testing and verification tools 89. Internet information services 90. Internet platforms 91. E-commerce (including cross-border e-commerce) 92. Industrial software development and application 93. Open source software communities 94. Research, development and application of quantum information technology (New) 95. Research, development and application of metaverse technology (New) 96. Research, development, testing and application of connected vehicles and autonomous driving technology 97. Digital roads and smart transport technology research and development 98. BeiDou satellite navigation applications 99. Construction and maintenance of submarine optical cables 100. Construction of online e-sports service platforms 101. Research, development and manufacturing of biochips and related data acquisition and processing equipment (New) 102. Research, development and application of network and data security technology products and services 103. Application of data asset ownership determination, registration and trading technology (New) 104. Animation and game production, distribution, trading and derivative development (New) 105. Technology research and development for satellite-based communications, navigation, positioning, mapping, meteorology, geological survey and spatial information services 106. Development of internet mapping, geographic information systems, surveying, remote sensing and navigation software, and related technical services

8. Financial Industry (8 items) 107. Financial intermediary services including personal and corporate credit investigation, credit ratings and credit enhancement 108. Financial information and data services 109. Construction of the two-way open cross-border investment and financing service system 110. Trading, financing, clearing, delivery, risk management and information services for spot commodities, insurance policies, price indices and related over-the-counter derivatives 111. Licensed micro-loan financial services for agriculture, small and micro enterprises, and individual businesses 112. Shipping-related financial services 113. Research, development, application and service output of financial technology products by institutions approved and supervised by financial regulators 114. Life insurance, reinsurance, mutual insurance, captive insurance, and insurance intermediary business

9. Leasing and Commercial Services (10 items) 115. Shipping services including arbitration, brokerage, consulting, trading, information services, marine loss adjustment, crew services, maritime training, vessel trading and ship leasing 116. Exhibition services and quality inspection and technical services 117. Trade, design and processing services for consumer goods including diamonds, jewellery and precious metal jewellery 118. Cultivation of professional social organisations and talent intermediary agencies, and small and medium-sized enterprise service system development 119. Regional headquarters of multinational companies 120. Investment, construction and operation of international exhibition facilities 121. Enterprise digital transformation services (New) 122. Service outsourcing 123. Equipment, instruments and property leasing related to offshore oil exploration, development and production 124. Language technology development and application (New)

10. Scientific Research and Technical Services (16 items) 125. Promotion and application of traditional Chinese medicine service standards and intellectual property rights 126. Seed industry inspection, quarantine and biotechnology development and regulatory system construction and operation 127. Construction of deep-sea service support bases 128. Smart ocean and marine information services (New) 129. Commercial space launch and commercial satellite measurement and control services 130. Training for aviation, aerospace and maritime personnel; aviation, aerospace and maritime science popularisation and cultural creative content (New) 131. Construction of the scientific and technological service system and science popularisation facilities 132. Construction and operation of research institutions, bases and their branches, and international scientific and technological innovation institutions 133. Construction and operation of resource libraries, scientific data centres 134. Construction of animal and plant genetic engineering and gene libraries 135. Industrial design, cultural and tourism creative design, architectural and environmental design, and digital creative design services 136. Construction of agricultural and forestry product trademarks and brands 137. International intellectual property (copyright) trade 138. Research, development and technical services related to offshore oil exploration, development and production 139. Biopharmaceutical contract research organisation services 140. Non-clinical safety evaluation services for pharmaceuticals and non-clinical research for medical devices (New)

11. Water Conservancy, Environmental and Public Facilities Management (11 items) 141. Green port construction, port LNG refuelling, shore power standards and supply system, shore power transformation and construction at ports and on vessels, clean energy technology research and application (Expanded) 142. Construction of rescue and salvage bases and rescue flight bases, rescue personnel training, and smart shipping testing and demonstration (Expanded) 143. Treatment of aquaculture wastewater (New) 144. Resource utilisation of agricultural film waste, pesticide packaging and other agricultural input waste (New) 145. Marine environment remediation, ecological restoration and ecological demonstration projects (New) 146. Research, development and industrialisation of core energy conservation and environmental protection technologies 147. Development of energy conservation and environmental protection technology and products, and related engineering, consulting and monitoring services 148. Natural gas cogeneration 149. Investment and operation of energy storage, hydrogen energy and LNG transit facilities (New) 150. Marine carbon sequestration and geological carbon sequestration projects (New) 151. Research, development and manufacturing of seawater desalination technology and equipment (New)

12. Education (3 items) 152. Higher education 153. International education 154. Vocational skills training

13. Health and Social Work (9 items) 155. High-end specialist medical care, rehabilitation and nursing services 156. Third-party medical testing and intermediary services, and medical quality and capacity evaluation 157. Application of high-end medical equipment and new pharmaceuticals 158. Traditional Chinese medicine service trade 159. Regenerative medicine services (New) 160. Research, diagnosis and prevention of tropical diseases 161. Operation of medical institutions 162. Trading platforms for green and authentic medicinal materials and characteristic health products (New) 163. Aviation medical rescue (New)

14. Cultural, Sports and Entertainment (13 items) 164. Cultural relics protection and utilisation, and cultural relics auction 165. Publishing services, and construction of publication display, trading and distribution outlets (physical bookstores) 166. International artwork display, trading and auction 167. Smart sports and e-sports 168. Cultural trade, exchange and cooperation 169. Travel agencies and tourism agency services 170. Cultural and tourism promotion and destination marketing 171. Tourism goods and souvenir development 172. Online tourism services 173. Leisure fishery 174. Performance brokerage, operation of performance venues and entertainment venues, and tourism performances 175. Traditional Chinese medicine health tourism bases, forest wellness bases, forest experience bases, national forest walkways, self-driving camps, business camps, and agricultural and forestry tourism scenic spots 176. Operation of tourism resorts, construction of scenic spots, and protection and renovation of historic and cultural districts

For Foreign-Invested Enterprises — 2025 Edition Update (in force 1 February 2026)

Foreign-invested enterprises (including Hong Kong, Macau and Taiwan-invested enterprises) use the Catalogue of Encouraged Industries for Foreign Investment (2025 Edition) — Hainan Province Section alongside the 2024 Edition above. The Hainan-specific section contains 102 items, a net increase of 30 from the 2022 Edition.

The three main areas of expansion are ecological protection (marine environment remediation, aquaculture wastewater treatment, port clean energy), advanced manufacturing (new energy vehicle batteries, marine renewable energy equipment, yacht assembly), and modern services (metaverse technology, international air cargo, global logistics systems).

Important — deleted items and transition rules:

Two categories have been removed from the foreign investment catalogue entirely: natural gas downstream chemical products, and high-end chemical materials technology research and design. One category has been narrowed: animation and game production now excludes pure animation production (动画片).

Enterprises in these categories should note the following transition:

• 2025 annual tax settlement (covering the full 2025 year): the 2022 Edition still applies. Enterprises meeting the 60% revenue threshold and substantive operations requirements can still claim the 15% CIT rate for 2025.
• From 1 January 2026 onwards: deleted categories no longer qualify as encouraged industries. Affected enterprises revert to the standard 25% CIT rate unless they qualify under other incentives.

The Three Conditions for the 15% CIT Rate

Regardless of which catalogue applies to your enterprise, you must meet all three of the following simultaneously:

1. Substantive operations in the FTP Your actual management must be located in the Hainan FTP, with real control over production, personnel, accounts and assets exercised from within the FTP. Core business decisions and financial accounting must take place in the FTP.

2. 60% revenue threshold Your primary business revenue from encouraged industry activities must account for at least 60% of total enterprise revenue. Total revenue includes sales of goods, provision of services, asset transfers, dividends and all other income types.

3. Self-assessment filing No advance approval or registration is required. Enterprises self-assess eligibility, declare accordingly, and retain supporting documentation. The incentive can be claimed at quarterly prepayment and annual settlement stages. All supporting materials — primary business evidence, revenue breakdowns, substantive operations documentation — must be retained for 10 years.

How to Determine if Your Business Qualifies

The Hainan Provincial Development and Reform Commission published a Classification Guidance document in July 2024 explaining the criteria for all 176 items in detail. This is available for download from the provincial DRC website (plan.hainan.gov.cn) under the "Encouraged Industries" section.

If you cannot determine your classification independently, contact the provincial tax authority at the Hainan Provincial Tax Bureau, 10 Longkun North Road, Haikou, or call the 12366 tax services hotline. Where classification is disputed, the provincial tax authority refers the question to the DRC for a formal opinion. Enterprises may request a review of any classification decision.

What this means in practice

The expansion from 143 to 176 items in the 2024 Edition meaningfully broadens eligibility — particularly for businesses in new energy, aerospace, medical devices, smart logistics, and digital services. If your business was borderline under the 2020 Edition, it is worth reassessing against the current list. The addition of items like metaverse technology, drone logistics, smart parking, language technology, and data asset trading reflects the FTP's ambition to attract genuinely new-economy businesses rather than simply replicating existing free trade zone models elsewhere in China.

This post is for informational purposes only and does not constitute tax or legal advice. Classification decisions should be verified with the relevant authorities or a qualified adviser.

If your employer enrolled you in the scheme, a portion of your salary and a matching employer contribution has been going into a dedicated account every month.

When you leave China permanently, you are entitled to withdraw the full balance. The process involves your employer, the local Housing Provident Fund Management Centre, and a specific set of documents including your passport, work permit cancellation, and proof of departure.

The window to claim closes, and once you are back home the process becomes significantly harder to complete remotely.

Full guide here: https://www.tropicalhainan.com/how-to-claim-your-housing-provident-fund-before-you-leave-china/

Did you know your Housing Provident Fund balance before you read this? And has anyone successfully claimed it after already leaving China? We'd love to hear from you. 

The Guidelines for Foreign Nationals Working in Hainan (2025 Edition) is an official bilingual reference document covering the full range of processes relevant to foreign professionals working in Hainan, from work permit applications and social security cards to residence permits, social insurance, business registration, and labour rights.

Whether you are newly arrived or looking to better understand your rights and obligations, we hope this guide serves as a practical and reliable reference throughout your time working in Hainan.