Substance Requirements for Hainan's 15% Tax Rate
The 15% rate is for companies that genuinely operate in the Hainan Free Trade Port. Here's what substance really means — and why you don't need to worry about getting it right.
Substance at a glance
What Hainan's tax substance requirements really mean
Explained plainly, so nothing surprises you later.
Genuine premises
An actual place of business in Hainan, not just an address on paper.
Real presence
Staff and management activity that show the company genuinely operates here.
Real business
Genuine business being carried out — the operations behind the company.
It protects 15%
The rate is for companies that really operate here, so substance keeps your eligibility.
Sounds demanding? It's planned, not improvised
Substance isn't a hurdle you face alone after the fact — it's something built into a good setup from day one. HCSG structures your operations so the substance is genuine and your 15% eligibility is protected, and we keep it that way over time. You get the truth of what's required; we carry the work.
Why a paper-only setup is a false economy
A shell company with no real operations may register, but it puts the 15% rate — and your standing — at risk if substance is ever tested. Building genuine substance from the start is cheaper than fixing a thin setup later. That's exactly what we plan for you, so the rate you set up for is the rate you keep.
How long the 15% 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.
How HCSG handles this for you
We make real substance the natural result of how we set you up.
Establish real operations
We help put genuine office, presence, and activity in place in Hainan.
Protect your 15% eligibility
We make sure your substance supports the rate, not undermines it.
Keep it genuine over time
Substance is ongoing — we help maintain it so the rate holds.
Carry the work for you
You get the benefit; we handle the structuring and upkeep.
The outcome: a company with genuine substance and a protected 15% rate — built in, not bolted on.
Questions founders ask us
Specific, net-new answers — not a repeat of the guide above.
What exactly is 'substance' for the Hainan tax rate?+
Can't I just register and keep operations elsewhere?+
How much substance is enough?+
Does substance affect both the 15% rate and my company standing?+
Is substance a one-time thing or ongoing?+
Do I have to hire local staff?+
What happens if my substance is questioned later?+
Will HCSG handle the substance side for me?+
Want the 15% rate to actually hold up?
We build genuine substance into your setup so the rate you qualify for is the rate you keep.
