How to view the latest tax policies for Hainan Fuxing City Internet Information Industry Park

On 23 July 2025, the State Council Information Office held a press briefing at which Hainan Party Secretary Feng Fei, Governor Liu Xiaoming, NDRC Deputy Director Wang Changlin, Vice-Minister of Finance Liao Min, MOFCOM Assistant Minister Yuan Xiaoming, and GACC Deputy Commissioner Wang Lingjun presented the latest progress on the Hainan Free Trade Port ("Hainan FTP") and took questions from the press.

1. Three main changes in the goods-tax framework after full closure

Vice-Minister Liao Min noted that "zero tariff" is one of the defining features of the Hainan FTP policy system. In recent years the MOF has rolled out three zero-tariff programmes — for raw materials, for vehicles and yachts, and for self-use production equipment — generating a body of practical experience that will inform the island-wide regime.

To support the steady roll-out of full customs closure, the MOF has designed a set of goods-tax rules for flows across the "first line" (Hainan ↔ overseas) and "second line" (Hainan ↔ Mainland), together with an Hainan FTP Import Tariff Catalogue. These rules will take effect from the closure date; existing zero-tariff programmes will be folded into the new framework, and the Hainan FTP zero-tariff system will be essentially complete.

After full closure, three changes stand out:

(1) Material expansion of zero-tariff coverage. Under full closure, zero-tariff treatment will be managed through a negative list (the Import Tariff Catalogue) instead of the current positive list. The number of zero-tariff HS codes will rise from around 1,900 to approximately 6,600 — about 74% of all codes, up roughly 53 percentage points.

(2) Broader eligible-entity pool. Today, only independently-registered legal-person enterprises and public institutions on the island can use zero-tariff treatment. After closure, eligibility will extend to most enterprises, public institutions and private non-enterprise units on the island with genuine import needs.

(3) Fewer restrictions on use. Under full closure, zero-tariff goods and products processed from them are no longer limited to the importer's own use — they may flow freely between eligible entities on the island, without back-payment of import tax. This is intended to extend on-island industrial chains, strengthen competitiveness, and foster cluster effects.

2. Five areas of continuing tax-policy dividend

The Overall Plan for the Construction of the Hainan FTP sets out a nine-character principle — zero tariff, low rate, simplified tax system — to be implemented in stages, ultimately forming an internationally competitive tax regime for the FTP. Since the plan was issued, the MOF has rolled out duty-free shopping for travellers leaving the island, zero-tariff treatment for some imported goods, and CIT/IIT preferential policies.

After full closure, the MOF will continue to deepen tax reform in five areas:

1. Continuing current CIT and IIT preferential policies to attract more high-end talent and quality enterprises to the FTP.
2. Further expanding the zero-tariff scope, with periodic adjustments to the Import Tariff Catalogue.
3. Continuing the duty-free shopping-for-travellers policy, with further refinements to support Hainan's position as an international tourism and consumption centre.
4. Studying an inbound-goods tax arrangement for on-island residents, moving toward a positive-list approach that would allow island residents to purchase certain imported goods duty-free. The MOF will launch pilot work as soon as practicable.
5. Steadily advancing the sales-tax reform study — combining VAT, consumption tax, vehicle purchase tax, urban maintenance and construction tax, and the education surcharge — guided by the principles of stability, order and step-by-step implementation, with pilots rolled out as the FTP develops.

3. Hainan Fuxing City Internet Information Industry Park — policy snapshot

Hainan Fuxing City is one of the 13 key parks under the Hainan FTP, focused on building a technology-innovation cluster and an internet-industry ecosystem. It comprises two main zones: the Fuxing City Internet Innovation and Entrepreneurship Base and the Fuxing City International Digital Port.

Since its launch in 2015, the park has consistently ranked first among Hainan's information-industry parks in provincial assessments and has earned a string of national honours, including National Youth Entrepreneurship Demonstration Park and National SME Public Service Demonstration Platform.

Policy advantages

• Tax incentives. 15% top IIT rate; 15% CIT rate.
• Investment facilitation. Tax exemption on qualifying new foreign-investment income; an open negative-list approach to foreign investment.
• Simplified tax system. 18 taxes consolidated into 7.

Opportunities for enterprises

• Domestic enterprises can set up a regional headquarters and enjoy facilitation as a settlement or operating centre.
• Multinationals can establish regional headquarters, settlement centres, R&D centres and the like, with streamlined cross-border capital and personnel channels.

Park amenities

• Commercial space. Fuxing Street — a curated retail and lifestyle environment covering dining, leisure, retail and sports.
• Talent housing. Fuxing · Huanian International Community — a high-end residential offering for international talent.
• Surrounding amenities. Schools, hospitals, parks, and cultural and sports facilities all within easy reach.

Landing suggestions

• Set up a regional headquarters to access the policy dividend and extend business footprint.
• Co-build cooperation platforms with the park — participate in the park's development and operations, sharing in its growth.