China Announces Enterprise Income Tax Incentives for Hainan Free Trade Port

The Ministry of Finance and the State Taxation Administration recently issued a list of enterprise income tax concessions (the ‘Hainan list’) for enterprises in the tourism, modern services and high-tech industries in the Hainan Free Trade Port (Cai Shui No. 14 [2021]) for implementation between 1 January 2020 and 31 December 2024.

According to Cai Shui No. 31 (2020), another circular issued in 2020, new foreign-sourced income received by enterprises in the tourism, modern services and high-tech sectors established in the Hainan Free Trade Port may be exempted from enterprise income tax. Policies for the tourism, modern services and high-tech industries are as stipulated in the Hainan list. For foreign-invested enterprises, the policies for industries listed in the Catalogue of Encouraged Industries for Foreign Investment shall apply.

Source: Website of Hainan Free Trade Port