Core Viewpoint - The unique tax system of "zero tariffs, low tax rates, and simplified tax structure" is a competitive advantage for Hainan Free Trade Port, which will release greater policy dividends as the island officially enters a closed operation phase [1] Tax Policy and Industry Ecology - A series of tax incentives exclusive to Hainan Free Trade Port will gradually reshape the commodity circulation and industrial layout after the island's closure [2] - The "zero tariff" policy will shift to a negative list model, exempting goods not listed from tariffs, expanding the covered goods from 1,900 to approximately 6,600, which includes 74% of production materials, a 53% increase from before [2] - The policy for duty-free domestic sales of processed goods with a value-added rate of 30% will be optimized, removing the requirement for 60% of revenue to come from encouraged business activities, thus broadening the scope of beneficiaries [2] Industrial Development and Policy Support - The changes will fundamentally alter Hainan's industrial layout, transitioning from a "multi-point distribution" model to a "core agglomeration area + regional collaboration" model [3] - Key industries such as raw material-dependent manufacturing, deep processing of agricultural products, and biomedicine are expected to benefit significantly, potentially forming high-end manufacturing and specialty agricultural processing zones [3] - The combination of "import duty exemption - value-added processing - domestic sales duty exemption" will empower private enterprises to integrate deeply into the dual circulation pattern and achieve industrial upgrades [3] Legal and Regulatory Framework - Hainan is establishing a transparent and orderly tax environment through defined eligibility criteria, anti-tax avoidance clauses, and strict anti-money laundering mechanisms [4] - The core requirement of "substantive operation" distinguishes Hainan from traditional tax havens, ensuring that tax incentives are linked to real economic activities [5] Simplified Tax System Reform - The ongoing "simplified tax system" reform aims to enhance Hainan's global competitiveness by consolidating various taxes into a sales tax, which will be levied at the retail stage [6] - The reform will be implemented gradually, with transitional policies allowing for tax deductions or refunds on pre-reform inventory to prevent arbitrage [6] - A comprehensive regulatory system is suggested to address potential issues arising from the simplified tax system, including tax evasion and cash transaction monitoring [7]