Hainan Free Trade Zone General Plan was officially released on October 18. According to the general plan, the free trade zone will cover the whole of Hainan island. The pilot zone is expected to be an international tourism and shopping center and offer support for the construction of the Belt and Road Initiative, which will build a solid foundation for the construction of a free trade port. The following are some of the preferential policies for businesses.
I. Visa-Free Policy
Since May 1 of this year a visa exemption policy for 59 countries including the United States and Russia has been implemented in Hainan Province. The visa-free duration has been extended to 30 days. Foreign tourists (or investors looking to scope out the island for themselves) can visit the island in their personal capacity without having to do so through a travel group and getting a group travel visa.
II. Departure Tax Refund Policy
Overseas passengers to the island can take advantage of the tax rebate policy upon their departure, and domestic passengers can benefit from a tax exemption policy (cancellation of the number of shopping restrictions for non-island residents, each person can purchase RMB 16,000 of duty-free goods). Hainan will further improve the tax-free shopping policies upon departure.
III. Exhibition Promotion Policy
Hainan will optimize the development of the exhibition industry and provide tax incentives and customs clearance for entry-oriented exhibitors.
In the near future, large-scale convention and exhibition activities sponsored and introduced by the Hainan Provincial Department of Commerce will provide a maximum subsidy of RMB 5 million yuan per conference and a maximum subsidy of RMB 5 million yuan per exhibition.
If the same event includes conferences and exhibitions, the amount of the total subsidy will not exceed RMB 8 million.
IV. Foreign Investment Policy
The government actively supports listing foreign-funded enterprises in Hainan on the domestic main board, SME board, GEM and overseas capital markets, as well as helping to conduct equity financing, where these enterprises can benefit from relevant supporting policies and corresponding financial subsidies.
For enterprises that have already entered the listing period and are registered by the Hainan Supervisory Bureau of the China Securities Regulatory Commission, as well as having completed the shareholding system restructuring will be given a one-time subsidy of RMB 500,000.
After the successful listing of domestic and foreign capital markets, the company will given a once-off reward of RMB 1.5 million.
V. Cruise Industry Development Policy
Investors in the cruise industry are entitled to a one-time subsidy of RMB 3 million yuan if they meet the following criteria:
1. Previously established an independent legal company in Haikou or an international cruise company in Haikou;
2. Obtained a domestic/international route operation permit from the transportation administrative department;
3. In operation for more than 2 years;
4. Currently uses Haikou Port as the port of departure for the cruise;
5. Tonnage is RMB 50,000 tons or less;
6. For cruise ships with a total tonnage of 50,000 tons or more, a one-time subsidy of RMB 5 million may be granted.
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