Hainan Free Trade Port Policy and Tax Incentives
Can every Hainan company enjoy the 15% corporate income tax rate?
Explains whether Hainan companies can use the 15% corporate income tax policy and what industry, income, substance and compliance conditions should.Short Answer
Not every Hainan company can enjoy the 15% corporate income tax rate. Eligibility depends on encouraged industry status, main income source, substance operation, accounting records, tax filing and supporting documents.
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's main business falls within encouraged industries and meets policy conditions.
- Whether main income is generated from qualifying business activities.
- Whether personnel, office, contracts, funds, invoices and accounting can support substance operation.
- Whether tax filing and document retention can withstand later review.
Practical Path
- Review industry category and income source before assuming eligibility.
- Prepare contracts, invoices, accounting records and operational evidence.
- Maintain substance operation materials continuously.
- Assess tax position each year based on actual business changes.
Common Risk
Registering in Hainan alone does not guarantee 15% CIT. Incorrect use can create tax adjustment and penalty risks.
Dingdang Advisory View
The 15% policy should be treated as a compliance project. Hainan Dingdang recommends reviewing policy fit before building tax planning around it.
FAQ
Can every Hainan company use 15% CIT?
No. Registration location alone is not enough.
What is usually reviewed?
Industry, income source, substance operation, accounting records and tax filings.
Should I apply before using it?
The process depends on current tax administration practice, but documents and eligibility should be prepared before relying on the policy.
Professional Advice