Core Viewpoint - The establishment of 18 tax policies in Hainan Free Trade Port is crucial for the implementation of its special tax system, focusing on trade and investment liberalization and facilitation [1][2]. Group 1: Tax Policies Overview - 18 tax policies have been implemented in Hainan Free Trade Port since its establishment, with 14 being early harvest policies outlined in the "Overall Plan" [1]. - The early harvest policies include three "zero tariff" lists for raw materials, self-use production equipment, and yachts, along with a 15% personal and corporate income tax and duty-free shopping for outbound travelers [1]. - Four additional policies introduced in recent years include "zero tariff" for pharmaceutical and medical devices in Boao Lecheng, exemption from stamp duty for offshore trade, and tax exemptions for temporary imports and exports [1]. Group 2: Future Tax Policy Changes - After the full closure of the island on December 18, the "zero tariff" policy will transition from three lists to a negative list management system, changing the current "14+4" policies to "13+4" [2]. - The new policies will include 10 related to tariffs, increasing the "zero tariff" level to 74%, along with two VAT refund policies and one stamp duty exemption for offshore trade [2]. - The tax system in Hainan Free Trade Port will exhibit stability, uniqueness, systematic nature, and gradual implementation, providing predictable and continuous benefits [2].

Core Insights - The forum on "Taxation and Free Zones: Challenges and Opportunities" highlighted the importance of tax policy in the development of free zones, with a focus on the competitive tax system of Hainan Free Trade Port [3]. Group 1: Tax Policy and Competitiveness - Hainan's tax system is characterized by zero tariffs, low tax rates, and a reduction system, aligning with international tax reform trends [3]. - The tax policy of Hainan Free Trade Port is designed to be flexible and systematic, catering to different categories of goods and industries [3]. - The tax system is a core component of Hainan's institutional framework, closely tracking international trade rules and continuously optimizing based on local economic conditions [3]. Group 2: Investment Attraction Strategies - The CEO of the Uruguay Americas Free Trade Zone emphasized the need for substantial tax adjustments to attract investors, ensuring that local companies maintain a competitive effective tax rate [3]. - The President of the China Service Trade Association noted that Hainan has significant opportunities for tax reform, particularly in service trade export tax rebates and zero tax rates in certain sectors [5]. - Hainan's geographical advantage allows for faster cross-border e-commerce delivery to Southeast Asia, enhancing its attractiveness for investment [5]. Group 3: Support for Enterprises - The CEO of the Georgia Poti Free Industrial Zone highlighted the importance of providing substantial support and diverse tax incentives to new enterprises, especially in smaller economies [4]. - Early-stage support for businesses is crucial to mitigate potential financial risks, which can include various forms of fiscal subsidies [4].

Core Viewpoint - The establishment of a tax policy system in Hainan Free Trade Port is aimed at promoting high-level openness and facilitating the flow of production factors, thereby enhancing Hainan's role as a significant platform for China's integration into economic globalization and regional trade cooperation [3][4]. Tax Policy System - The tax policy system in Hainan Free Trade Port has been preliminarily established, focusing on trade and investment liberalization, with principles of zero tariffs, low tax rates, simplified tax systems, strong legal frameworks, and phased implementation [4][6]. - As of now, 18 tax policies have been implemented, including three "zero tariff" lists for raw materials, self-use production equipment, and yachts, along with 14 early harvest tax policies [4][6]. Characteristics of Tax Policies - The tax policy system has four main characteristics: stability, special arrangements for Hainan, systematic coverage of various sectors, and a gradual approach to policy rollout and optimization [8]. - The policies are designed to support industrial structure optimization, talent introduction, and the development of international tourism consumption centers [8]. Implementation Measures - Hainan has introduced a management approach for recognizing beneficiaries of "zero tariff" imports and has optimized the process for high-end talent to enjoy personal income tax benefits [9][10]. - A closed-loop mechanism for the formulation, implementation, evaluation, and improvement of tax policies has been established to ensure effective policy execution [10]. Future Developments - The full closure operation of Hainan Free Trade Port is set to commence on December 18, 2023, with ongoing preparations to maximize the benefits of tax policies [10].

Core Viewpoint - The tax policies implemented in Hainan Free Trade Port are driving high-level openness to the outside world, facilitating the flow of production factors and expanding both international and domestic markets [1][3]. Tax Policy System Establishment - The tax policy system for Hainan Free Trade Port has been initially established, focusing on trade and investment liberalization and facilitation, with principles of zero tariffs, low tax rates, simplified tax systems, strong legal frameworks, and phased implementation [4]. - As of now, 18 tax policies have been implemented, including three "zero tariff" lists and 14 early harvest tax policies, with additional incremental tax policies introduced [4][5]. Characteristics of Tax Policies - The tax policy system has four main characteristics: stability, special arrangements for Hainan, systematic coverage of various sectors, and a gradual approach to policy rollout and optimization [7]. Supportive Measures for Policy Implementation - Hainan is actively promoting the implementation of tax policies through institutional guarantees, system optimization, service enhancements, and training [8]. - A management approach for recognizing beneficiaries of "zero tariff" imports has been established, along with a mechanism for evaluating and improving tax policies [9]. Future Developments - Hainan Free Trade Port will officially start full island closure operations on December 18, 2023, with ongoing preparations to ensure the effective implementation of tax policies and the continuous release of policy dividends [9].

Core Points - Hainan has implemented 14 early tax policies to establish a tax system for the free trade port, focusing on "zero tariffs" and "low tax rates" to attract businesses and individuals [1][6] - The "zero tariff" policy has been expanded to include medical devices and pharmaceuticals, benefiting both enterprises and individuals [4][6] - The tax incentives have significantly reduced operational costs for companies, enhancing their competitiveness in the global market [5][7] Tax Policies - The "zero tariff" policy includes three lists covering raw materials, self-use production equipment, and transportation tools, which have collectively imported goods worth 226.9 billion yuan, resulting in tax reductions of 43.2 billion yuan [6][8] - The corporate income tax and personal income tax are set at a preferential rate of 15%, attracting nearly 4,300 enterprises to benefit from this policy [7][8] - The implementation of the "zero tariff" policy has led to substantial savings for companies, with one company saving approximately 44 million yuan in taxes from importing goods valued at 350 million yuan [5][6] Economic Impact - The tax incentives have attracted over 85,000 talents to Hainan, contributing to the development of the free trade port [8] - The policies have facilitated the transformation of companies, such as a pharmaceutical company that shifted from a commercial entity to a production enterprise, saving over 10 million yuan in taxes [7][8] - The continuous optimization of tax policies has enhanced Hainan's appeal as a business destination, fostering economic growth and development [6][7]