Hainan Further Implements Zero Tariff and Low Tax Rate Policies

On November 22, 2022, the website of the Hainan Provincial People’s Government released the Implementation Opinions on Further Optimizing the Business Environment and Reducing the Institutional Transaction Costs of Market Entities (“Opinions”), which requires making good use of the preferential tax policies of the Hainan Free Trade Port.

The Opinion emphasizes to make sufficient preparation for the closed customs operations, implement zero tariff and low tax rate policies on a larger scale, and advance the policy of Simple Tax to ensure the smooth operation of closed customs. It shall guide and support enterprises to make full use of three lists of Zero Tariff Policy and “two 15%” of Preferential Tax Policy. It also supports the enterprise within comprehensive bonded zone to choose to apply selective taxes for domestic sales based on its production and operation needs, as well as supports the promotion of the pilot program of general VAT taxpayer qualifications.