China News Agency, Beijing, June 1. The "Overall Plan for the Construction of the Hainan Free Trade Port" (hereinafter referred to as the "Overall Plan") issued by the Central Committee of the Communist Party of China and the State Council pointed out that in accordance with different stages of the construction of the Hainan Free Trade Port, zero tariffs, Low tax rate and simplified tax system.
Zero tariffs: Before the whole island is closed, some imported commodities are exempted from import duties, import value-added tax and consumption tax. After the island-wide customs clearance operation and the deduction of the tax system, import tariffs are exempted for goods that are not allowed to be imported into the Hainan Free Trade Port.
The picture shows the entrance of Yangpu Bonded Port Area. China News Service reporter Luo Yunfei
Low tax rate: Preferential corporate income tax rate is applied to enterprises that are actually operating in Hainan Free Trade Port. Preferential tax rates for personal income tax are applied to eligible individuals.
Simplify the tax system: Combine with the direction of China's tax system reform, explore and promote the simplified tax system. Reform the tax type system, reduce the proportion of indirect taxes, achieve a simple and scientific structure of tax types, fully optimize the tax system elements, significantly reduce the level of tax burden, clear income attribution, and generally balanced fiscal revenue and expenditure.
The picture shows the aerial photography of Sinopec Hainan Refining and Chemical Co., Ltd. located in Hainan Yangpu Economic Development Zone. China News Service reporter Luo Yunfei
According to the "Overall Plan", by 2025, a zero-tariff policy for some imported goods will be implemented. In addition to the laws and regulations and related regulations that clearly exclude tax exemptions and national regulations prohibiting the import of goods, the company implements a "zero tariff" negative list management of production equipment imported for enterprise use; for islands imported for transportation, tourism, Aircraft and other operational vehicles and yachts are subject to "zero-tariff" positive list management; for raw materials and materials imported on the island for consumption for production or for production and processing activities (or in the process of service trade) in a "two ends" mode The implementation of a "zero tariff" positive list management; for the entry of goods consumed by residents of the island, the implementation of a positive list management, allowing tax-free purchases on the island.
From the date of promulgation of the "Overall Plan", for enterprises in the encouraged industries registered in Hainan Free Trade Port and substantively operating, the enterprise income tax will be reduced by 15%. For high-end talents and talents in short supply who work in Hainan Free Trade Port, the portion of their personal income tax actually exceeding 15% will be exempted.
According to the "Overall Plan", the fiscal and taxation system reform will be further promoted by 2035. For enterprises registered in Hainan Free Trade Port and substantively operating (except for negative list industries), the enterprise income tax is reduced by 15%. For individuals who have accumulatively lived in Hainan Free Trade Port for 183 days within a tax year, they obtain comprehensive income and operating income derived from the scope of Hainan Free Trade Port, and levy individuals at three progressive tax rates of 3%, 10% and 15%. Income tax. At the same time as the island-wide customs clearance operation, the current value-added tax, consumption tax, vehicle purchase tax, city maintenance and construction tax, and education surcharge and other taxes were consolidated, and work related to the collection of sales tax in the retail chain of goods and services was initiated.
The "Overall Plan" requires strengthening the identification of tax evasion risks, preventing tax base erosion and profit transfer, and avoiding becoming a "tax haven". (Finish)