Hainan Investment Preferential Policy

Preferential Policies for Foreign Investment in Hainan is issued to attract foreign capital. Hainan has identified 12 key industries, including tourism, Internet, medical treatment and bio-pharmaceuticals, and introduced preferential policies. Due to the policies, the island province has become a hot spot for foreign investment. It is said that 360 foreign-funded enterprises have been set up in the province, with contracted foreign capital reaching 25.4 billion U.S. dollars in the past five years. In 2017, the island signed almost 40 foreign investment projects.

Preferential Policies for Foreign Investment
1. Foreign-invested enterprises engaged in production and operation in Hainan Special Economic Zone shall pay the enterprise income tax at the rate of 15%.

2. Foreign-invested enterprises engaged in production and operation in Hainan Special Economic Zone shall be exempted from local income tax.

3. Foreign investors without an office in China shall be exempted from withholding tax for their income from dividends, interest, rents, royalties and other sources in Hainan Special Economic Zone.

4. For export-oriented or technologically advanced foreign-invested enterprises, the internationally accepted accelerated depreciation method shall be adopted to facilitate equipment upgrading and technological progress upon the approval of competent authorities in charge of finance and taxation in Hainan.

5. Products from foreign-invested enterprises sold in Hainan Special Economic Zone shall be exempted from product tax or value-added tax, except for tobacco, alcohol, mineral oil and a few other products that are subject to halved product tax or value-added tax in accordance with regulations of Hainan Provincial People's Government.

6. Products from foreign-invested enterprises sold to places other than Hainan in China shall be levied with product tax or value-added tax, in addition to getting approval from competent authorities for products restricted for import into China.

7. Foreign-invested enterprises that need loans in the production and distribution processes shall enjoy priority in getting loans from the depositary bank or other financial institutions in accordance with the Regulations of the Bank of China on Loans to Foreign-Invested Enterprises.

8. Foreign-invested enterprises may apply for replacing imports with local production if their products are sold in China and comply with relevant state regulations.

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If you have further inquires about doing business in Hainan, please do not hesitate to contact Tannet at anytime, anywhere by simply visiting Tannet’s website english.tannet-group.com, or calling our hotline at 86-755-82143181, 86-755-82143422, or emailing to tannet-solution@hotmail.com. Our experienced consultants will be glad to assist and advice on how to approach your particular challenge.