Hainan Regulates Fiscal and Tax Policies for Supporting Industries

Starting from 25 June, city and county governments, government departments and relevant industrial parks in Hainan province must not introduce any incentives directly linked to tax payments by enterprises when formulating investment promotion or industrial support policies, and must comply with the relevant requirements for the construction of the Hainan Free Trade Port.

Moreover, after receiving bonuses and grants from the provincial coffers, the city and county governments and industrial parks may not link these funds to the taxes paid by enterprises or the non-taxable incomes of enterprises and directly reward these to enterprises. The bonuses and grants should mainly be used to upgrade the capability of industrial parks in nurturing key industries.

Full details can be found in the notice issued by the Hainan Provincial People’s Government on 21 May (Qiong Fu Ban No. 18 [2021]).

Source: Hainan Provincial People’s Government