Hainan Free Trade Port Policy and Tax Incentives
Does Hainan 15% corporate income tax need an application?
Explains whether Hainan 15% corporate income tax requires an application and how companies should prepare eligibility documents and tax records.Short Answer
Whether the Hainan 15% CIT policy requires a formal application depends on current tax administration practice, but companies should prepare industry, income, substance operation and accounting evidence before using the policy.
Who This Applies To
- Business owners across China planning to use a Hainan entity for real business, tax compliance or group planning.
- Foreign investors, overseas companies, trading teams and cross-border e-commerce operators evaluating Hainan Free Trade Port opportunities.
- High-profit companies, group companies and founders preparing tax planning, equity structure, financing or pre-IPO compliance.
Key Points to Review
- Whether the company meets encouraged industry and income-source conditions.
- Whether policy use is handled through filing, retention-for-review or other current tax procedure.
- Whether contracts, invoices, personnel, office and accounting records support the tax position.
- Whether annual changes affect continued eligibility.
Practical Path
- Review eligibility before annual tax filing.
- Organize supporting documents according to tax review logic.
- Maintain substance operation and accounting evidence.
- Reassess the policy position when business or income structure changes.
Common Risk
Even when a policy is used through self-assessment, the company must keep sufficient evidence for later review.
Dingdang Advisory View
The question is not only whether to apply, but whether the company can explain eligibility if reviewed later.
FAQ
Is a formal application always required?
Not always. The procedure may vary, but evidence preparation is always important.
What evidence should be kept?
Industry materials, contracts, income records, personnel/office evidence, accounting records and tax filings.
Can eligibility change each year?
Yes. Business model, income source and substance operation changes can affect eligibility.
Professional Advice