1.Q:

Who can enjoy a preferential personal income tax rate of 15% in the Hainan Free Trade Port?

A:

Domestic and overseas qualified high-end talents and highly-demanded talents can enjoy a preferential personal income tax rate of 15% in the Hainan Free Trade Port.

2.Q:

Which personal income shall be applied by the above preferential policies?

A:

It includes comprehensive income and operating income earned in or from the Hainan Free Trade Port, as well as talent subsidies recognized by Hainan Province.

Comprehensive income includes wages & salaries, remunerations for personal service, contribution fees and royalties. Operating income refers to income of the individuals and individual businesses from their production and operating activities.

3.Q:

How can high-end talents and highly-demanded talents enjoy this policy?

A:

They should work in the Hainan Free Trade Port, and have signed a labor contract or employment agreement for more than one year with a company or unit which has been registered and put into substantial operation in the Hainan Free Trade Port.

Moreover, they must have purchased social insurance for more than 6 consecutive months in the Hainan Free Trade Port in a tax year (including December of the current year). This article does not apply to foreign talents who cannot purchase social insurance.

4. Q:

How much annual income shall be applied by this preferential policy?

A:

Through calculation, the taxable comprehensive income reaches about RMB 319,000, while the taxable operating income reaches about RMB 210,000.

The taxable comprehensive income is equal to the income of each tax year minus RMB 60,000, special deductions, special additional deductions, and other deductions determined by law.

The taxable operating income is equal to total income of each tax year minus costs, expenses and losses.

5. Q:

When can qualified high-end talents and highly-demanded talents enjoy this policy?

A:

This policy shall come into force since January 1, 2020. Eligible high-end talents and highly-demanded talents can enjoy the above preferential policies at the time of handling annual settlement and payment of personal income tax in Hainan Province. At that time, the actual tax in excess of 15% shall be refunded.

6.Q:

Who are high-end talents?

A:

One of the following conditions is met:

1. Talents recognized by the talent management departments of Hainan Province at all levels.

2. In a tax year, the income earned in or from Hainan Free Trade Port reaches more than RMB 300,000.

7.Q:

Who are highly-demanded talents?

A:

They should be included into the Catalogue of Highly-demanded Talents in Hainan Free Trade Port Industry (the catalogue is attached and dynamically adjusted in due time).

They are mainly classified into the following five categories:

1. Skills and technical backbones and management talents in tourism, modern service industry and high-tech industry ("three main industries"), as well as effective tropic agriculture - seed industry, medical care, education, sports, telecommunications, Internet, culture, maintenance, finance, shipping and other key fields;

2. Talents hired by government agencies and institutions, statutory agencies and social organizations of Hainan Province;

3. Foreign talents who meet the relevant standards of the Interim Measures for the Administration of Work Permits for Foreigners to Hainan;

4. Hong Kong, Macao and Taiwan talents practicing in the Hainan Free Trade Port.

5. Skills and technical backbones and management talents highly demanded in other non-restricted access industries in Hainan.

8.Q:

What should I do if there is an objection or dispute over whether this policy is applicable?

A:

If there is an objection or dispute over the talents who enjoy a preferential tax rate, the talent management departments of Hainan Province at all levels shall lead the coordination and settlement.

If there is an objection or dispute over substantial operation of the enterprises or units where the talents work in the Hainan Free Trade Port, the Administration for Market Regulation of Hainan Province shall lead the coordination and settlement.