Core Points - Hainan Free Trade Port is entering a new phase with the full island closure operation set to start on December 18, 2025, which will significantly expand the scope of "zero tariff" imports [1][2] - The "zero tariff" policy will shift from a positive list to a negative list management system, allowing 6,637 items to be imported at zero tariff, covering approximately 74% of all goods [2][3] - The processing value-added tax exemption policy has been adjusted to attract more manufacturing industries, removing the previous requirement that 60% of a company's revenue must come from encouraged industries [3][4] Tax Policy Features - The tax system of Hainan Free Trade Port includes a dual 15% corporate income tax incentive for encouraged industries, benefiting nearly 4,300 enterprises and over 39,000 individuals by the end of 2024 [6][7] - High-end and scarce talents working in Hainan can enjoy personal income tax exemptions on income exceeding 15%, with optimized residency calculations [6][8] - The tax policies aim to significantly boost industries such as pharmaceuticals, high-end food processing, and seed industries, enhancing the overall trade environment [7][8] Economic Impact - The "zero tariff" and low tax rate policies are expected to enhance Hainan's position as a global trade hub, facilitating resource and factor aggregation [8] - The cumulative value of processing value-added goods reached 10.46 billion yuan, with tax exemptions amounting to 810 million yuan, indicating strong economic activity [4][7] - The policies are designed to support the development of a modern biopharmaceutical industry, allowing for significant cost savings in production and research phases [7][8]