During 2020 through 2024, the amount of income in excess of the taxable burden subject to a 15% personal income tax rate, earned by high-end talents and highly demanded talents employed in the Hainan FTP, are exempt from individual’s taxable income in the following categories: comprehensive income and business income earned in the Hainan FTP, as well as talent subsidies recognized by the Hainan Provincial Government. Comprehensive income covers salaries or wages, remuneration for providing services, author’s remuneration and royalties, but exclude investment income (e.g. dividend, interest and bonus).The above incentive policy will apply when taxpayers are doing annual Individual income tax reconciliation on condition that:Where in general situation:(a) a taxpayer who has stayed in the Hainan FTP for an aggregate 183 days in a single tax year; and(b) a taxpayer who has been classified as talent or earned in a tax year in the Hainan FTP over RMB 300,000(this criterion will be adjusted accordingly with the economic development of Hainan FTP).Where in a particular situation:A taxpayer engaging in aviation, shipping, oil and gas exploration has stayed in the Hainan FTP in a tax year for less than an aggregate 183 days due to operation requirement, the incentive policy will apply when the following conditions are simultaneously met :(a) Classified as talent or earned in a tax year in the Hainan FTP over RMB 300,000; (b) Paid, as an employee in the Hainan FTP, basic old-age insurance for successive 6 months (must include December of this year) in a tax year (excluding exempted person from countries that entered in bilateral insurance agreement with China); (c) Signed employment contract, agreement, or other equivalent document, which has a duration exceeding one year, as a proof of employment relationship with entities that have registered and have been substantially operating in the Hainan FTP; (d) The taxpayer should submit an application to the tax authority within the stipulated time period. The incentive policy will be enjoyed after the taxpayer has been confirmed as qualified by the Department of Human Resource of Hainan Province.

Steps for eligible high-end and urgently needed talents to handle their comprehensive income tax settlement and payment through the personal income tax APP are as follows.

1. On the homepage of personal income tax APP, select “Tax Service”, “Annual Comprehensive Income Tax Settlement” or “General Service”, “Annual Comprehensive Income Tax Settlement” to access the form of annual comprehensive income tax return.

2. Select “Tax Year” and then “I need to pre-fill the Tax Return”, then click “Start Tax Return”.

3. Confirm the employer and the competent tax authorities.

4. Fill in the Tax Return.

5. Fill in the “Preferential Personal Income Tax Rate for High-end and Urgently Needed Talents in Hainan FTP” and other preferential tax items.

6. After the tax return is completed and the information confirmed, click "Submit Tax Return " and "Confirm Submission" in sequence to finish the process of tax return.

7. If you need to make additional tax payment or apply for a tax refund, please follow the prompts on the page and click “Pay Now” or “Apply for Tax Refund”. If you have not linked your bank account information yet, you can add it in “Bank Card” section under “Personal Center”.