For tourism, modern services and high⁃tech industries， enterprises established in Hainan FTP are entitled to corporate tax exemption for income from newly increased overseas direct investment in the period of January 1st, 2020 to December 31st, 2024.

Applicable Conditions

The main subjects enjoying the preferential treatment are: 1, Tourism enterprises established in Hainan FTP; 2, Modern service enterprises established in Hainan FTP; 3, High-tech industrial enterprises established in Hainan FTP. The subject enjoying this preferential tax policy shall meet two conditions at the same time: 1, the operating profits obtained from the newly established overseas branches; Or the dividend income corresponding to the new foreign direct investment from the foreign subsidiary with a shareholding ratio of more than 20% (including). 2, the statutory corporate income tax rate of the invested country (region) is not less than 5%.

Operation Process

Ⅰ. Handling Methods

Adopting the method of "self-identification, declaration and enjoyment, and relevant data retention for future reference".

According to the provisions of the Announcement of the State Administration of Taxation on the Release of the Revised "Measures for the Handling of Enterprise Income Tax Preferential Policies" (No. 23 of 2018), enterprises enjoy the preferential income tax policies of enterprises in industries encouraged by the Hainan FTP, and they are handled in the way of "self-identification, declaration and enjoyment, and relevant information is retained for future reference".

Ⅱ. Enterprise Tax Declaration Method

Eligible taxpayers, in the quarterly pre-payment of corporate income tax and annual final settlement, can through the online electronic tax bureau [I Need to Pay Taxes] - [Tax Declaration and Payment] - [Regular Declaration] path, self-declaration to enjoy preferential policies.

(1) Resident Enterprises

Only when the annual final settlement is completed, the corresponding columns of "Hainan FTP Enterprise's New overseas direct Investment Income" shall be filled out in column 19-26 of Table A108010 of the "Income after Tax Adjustment of Overseas Income Tax".

(2) Non-resident Enterprises, Institutions & Places

Taxpayers who declare benefits at the time of annual final settlement shall, in line 6-10 of "Item ① - Item ⑤" under "Tax Exemption, Income Deduction and Additional Deduction" in line 5 of "Annual Tax Return of Non-resident Enterprise of the People's Republic of China (2019 Edition)" (Form F200 ), Fill in the waiver code "04039907" at the underline (This code corresponds to the waiver item: Hainan FTP tourism industry, modern service industry, high-tech industry enterprises new overseas direct investment income tax exemption), and in the corresponding line of "calculated according to the actual amount of declaration" column, fill in the declaration of the end of the period according to the provisions of the actual enjoyment of the accumulated amount of income tax relief.

Hotline: Mr. Wang 18689654586

              Mr. Li     13807675120