The Hainan Free Trade Port 15% Corporate Tax — How to Qualify in 2026
Qualifying companies pay just 15% Corporate Income Tax instead of China's standard 25%. Here's who qualifies, how long it runs, and how HCSG structures your setup to secure it.
The Hainan 15% corporate tax rate at a glance
How to qualify for the Hainan Free Trade Port 15% corporate tax
Three conditions decide it — and getting them right from day one is the whole game.
Be on the catalogue
Your business activity must sit within Hainan's encouraged-industries catalogue.
Mostly encouraged income
At least about 60% of your main-business income should come from encouraged activities.
Real local operations
You need real operations in Hainan — office, people, and activity, not a paper shell.
The 15% rate is not automatic
Registering in Hainan does not, by itself, give you 15%. You have to qualify on the conditions above and claim the rate correctly. Done right from the start it's straightforward; done as an afterthought it can be missed. HCSG structures your scope and setup to qualify, and handles the claim so the rate actually applies — the detailed filing mechanics are something we manage with you in consultation.
How long the Hainan 15% corporate tax rate runs
A confirmed window now, and a wider one later — not a cliff edge.
Confirmed through 31 December 2027
The 15% corporate rate for qualifying companies — and the matching 15% cap on individual income tax for high-end, in-demand talent.
It widens, not ends
As the FTP completes its build-out, the 15% corporate rate is planned to extend to nearly all FTP enterprises, and the talent tax break to all residents over 183 days.
Early movers establish their position now — while the rate is confirmed and before requirements tighten. HCSG gets you set up and qualified.
Hainan's 15% corporate tax rate vs the 15% talent cap
Hainan's two headline 15% benefits apply to different people — don't confuse them.
For your business
Qualifying companies pay 15% Corporate Income Tax instead of 25%. This is the corporate incentive.
For key people
High-end and in-demand talent pay no more than 15% individual income tax, versus mainland rates that climb much higher.
Bonus: an offshore-income exemption for some sectors
Beyond the 15% rate, qualifying tourism, modern-services and high-tech companies in the FTP can be exempt from corporate income tax on the new income they earn from outbound direct investment. Combined with paying 15% instead of the standard 25% national rate, the FTP can change the maths of where a China business is based. Whether your sector and income qualify is something we assess for you.
How HCSG handles this for you
We make the 15% rate a built-in outcome of your setup, not a hope.
Structure your scope to qualify
We align your business scope to the encouraged-industries catalogue from the start.
Build genuine substance
We set up the real local operations the rate depends on — office, presence, and activity.
Claim the rate correctly
We make sure the 15% rate is actually applied, not left on the table.
Position your key talent
We advise on the 15% individual-income-tax cap for your high-end and in-demand people.
The outcome: a company built to pay 15%, not 25% — with the qualification and the claim handled.
Questions founders ask us
Specific, net-new answers — not a repeat of the guide above.
Does registering a company in Hainan automatically give me the 15% rate?+
What's the difference between the 15% corporate rate and the 15% talent cap?+
How does 15% compare to normal China company tax?+
Is the 15% rate going to disappear after 2027?+
What counts as an 'encouraged industry'?+
What is the 60% income test?+
Can a Hainan company really be exempt from tax on some income?+
Do I need staff and an office in Hainan to get 15%?+
Want your company built to pay 15%, not 25%?
Tell us what you do and we'll structure your Hainan setup to qualify for the 15% rate — and handle the claim.
