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 closes its borders for operations [1]. Tax Policy and Industry Transformation - 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. The "zero tariff" policy will shift to a negative list model, exempting goods not listed from tariffs, increasing the number of tariff-exempt items from 1,900 to approximately 6,600, covering 74% of production materials, a 53% increase from before the closure [6]. - The policy for duty-free domestic sales of processed goods with a value-added rate of 30% will be further optimized, removing the requirement that 60% of the main business income must come from encouraged categories, thus broadening the scope of beneficiaries [6]. - The tax advantages will significantly lower the procurement costs for enterprises importing raw materials and intermediate goods, enhancing profitability through the use of zero-tariff investment goods [6]. Industrial Layout Changes - The tax policies will fundamentally change the industrial layout of Hainan, transitioning from a "multi-point distribution" model to a "core agglomeration area + regional collaboration" model centered around key parks. Industries such as raw material-dependent manufacturing, deep processing of agricultural products, and biomedicine are expected to benefit significantly [7]. Policy Synergy and Efficiency - The combination of "zero tariffs" and duty-free domestic sales for processed goods will create a supportive policy framework for enterprise development. The shift from a "positive list" to a "negative list" management model will enhance customs efficiency and provide a solid institutional guarantee for the free flow of goods [8]. Defining Legal Benefits - Hainan is establishing an "open and orderly" tax environment through clear definitions of eligibility for tax benefits, anti-tax avoidance clauses, transparency, and strict anti-money laundering mechanisms. The core requirement of "substantive operation" distinguishes Hainan from traditional "tax havens," ensuring that tax benefits are closely linked to real economic activities [10]. 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 for goods and services. This reform is being advanced cautiously and in phases [12]. - The reform will require transitional policies to allow for tax deductions or refunds on pre-reform inventory, and careful design of sales tax rates to prevent arbitrage due to price discrepancies [12][13]. Regulatory Framework - To address potential issues arising from the simplified tax system, a "three-chain integration" regulatory framework is proposed, promoting the upload of supply chain information, dynamic monitoring of financial flows, and the use of blockchain for invoicing [13].

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]

Core Insights - 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 operates under customs closure [1] - Hainan is building an "open and orderly" tax environment to attract global resources while preventing systemic risks, achieving the dual goals of "loose management and strict control" [1] Tax Policy Changes - The "zero tariff" policy will shift to a negative list model post-customs closure, expanding the number of tariff-exempt goods from 1,900 to approximately 6,600, covering 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 a 60% revenue share from encouraged main business activities, thus broadening the scope of beneficiaries [2] - The tax advantages will significantly lower procurement costs for enterprises importing raw materials and production equipment, enhancing profit margins for manufacturing [2] Industrial Transformation - The tax policies will fundamentally change Hainan's industrial layout, transitioning from a "multi-point distribution" model to a "core agglomeration area + regional collaboration" model [3] - Key sectors 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 shift from a "positive list" to a "negative list" management model will enhance customs efficiency and provide a solid institutional guarantee for the free flow of goods [3] 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 closely linked to real economic activities [4][5] Simplified Tax System - The upcoming "simplified tax system" reform aims to promote offshore trade by consolidating various taxes into a sales tax, which will be levied at the retail stage for goods and services [6] - A transitional policy is suggested to allow tax deductions or refunds for pre-reform inventory, preventing tax arbitrage [6] - A "three chains integrated" regulatory system is proposed to enhance monitoring of supply chains, financial flows, and invoicing, ensuring compliance and market inclusivity [7]

Group 1 - The "zero tariff" policy in Hainan Free Trade Port has been significantly optimized, expanding the range of zero-tariff goods to approximately 6,600 tax items, covering 74% of all goods [1][2] - The optimization of the "zero tariff" policy will lower production and operational costs for enterprises on the island, enhance industrial added value, and accelerate the formation of high-end manufacturing and modern service industry ecosystems [1][2][3] - The expanded "zero tariff" list will reduce raw material costs for registered enterprises and encourage deeper processing, benefiting industries reliant on imported raw materials [2][3] Group 2 - The optimized processing value-added policy will push the industrial chain towards higher value-added segments, particularly benefiting sectors like raw material-dependent manufacturing, deep processing of agricultural products, and biomedicine [3][4] - The unique tax arrangements in Hainan are expected to support the construction of a high-end manufacturing and modern service industry ecosystem, creating a cluster of small and medium-sized enterprises closely connected to leading domestic and international companies [4][5] - Hainan's strategic location within the RCEP region positions it as a key platform for enhancing economic cooperation with ASEAN countries [5][6] Group 3 - Despite the progress, Hainan Free Trade Port still has gaps compared to international high-standard free trade zones, such as those in Dubai and Singapore, particularly in terms of trade liberalization and financial openness [7][8] - The province aims to strengthen the dual mechanism of "integrated manufacturing + consumption" while enhancing local consumer markets and international tourism consumption [7][8] - Experts suggest further expanding financial openness and exploring innovative tax policies for service trade to enhance international competitiveness [8]