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.

1. Application for Subject Qualification. Before importing tax-free operating transport vehicles and yachts, enterprises need to apply for subject qualification through the "Hainan Special Application - Tax-Free Zone" and the "Transport Vehicles and Yachts" function module of the "China (Hainan) International Trade Single Window". The list of enterprises that meet the qualification for enjoying the benefits will be reviewed and approved, and then passed onto  Haikou Customs and the Hainan Provincial Taxation Bureau by the Hainan Provincial Department of Transportation through the system platform. Enterprises can check the review results through the "China (Hainan) International Trade Single Window".

2. Completing Account Information. Enterprises that meet the conditions for enjoying the policy should complete the customs enterprise registration on the international trade "single window" or the "Internet + Customs" platform before the first application for tax-free import of transport vehicles and yachts. They should also complete the enterprise account information in the "Hainan Tax-Free Import of Production Equipment and Transport Vehicles Platform" system of the international trade "single window".

3. Tax-Free Import Declaration. Enterprises should handle customs clearance procedures through the China (Hainan) International Trade "Single Window". If it involves the management of import permits, they should handle import and export supervision documents such as "Automatic Import License" in advance.