The Overall Plan for the Construction of Hainan Free Trade Port provides that, for the high-end and urgently-needed talents working in Hainan Free Trade Port before 2025, the portion of their personal income with an actual tax burden exceeding 15% will be exempted from tax.

The following types of income sourced from Hainan Free Trade Port will be eligible: comprehensive income, such as wages and salaries, remuneration for labor services, author’s remuneration, and income from royalties; operation income; and talent subsidy income recognized by Hainan Province.

Taxpayers completing the formalities for annual final settlement of individual income tax in Hainan Province may enjoy the aforesaid preferential policies.

A list of professionals that qualify as high-end and urgently-needed talents who can enjoy the aforesaid preferential policies and specific administrative measures will be formulated by Hainan Province in consultation with the Ministry of Finance (MOF) and the State Administration of Taxation (STA).

After 2025, individuals who have aggregately stayed in the Hainan FTP for 183 days during a tax year may receive reduced progressive IIT rates of 3%, 10% and 15% for comprehensive income and operation income derived from the Hainan FTP.