Does registering a company in Hainan automatically give me the 15% rate?

No. Registration and the tax rate are separate. You qualify by being in an encouraged industry, earning most of your income from it, and having genuine local operations, then claiming the rate correctly. We handle both the qualifying and the claim.

What's the difference between the 15% corporate rate and the 15% talent cap?

The 15% corporate rate is on company profits, for qualifying companies. The 15% cap is on personal income tax, for recognised high-end and in-demand talent. They're separate benefits that can apply to the same business and its key people.

How does 15% compare to normal China company tax?

China's standard national corporate income tax is 25%. A qualifying Hainan FTP company pays 15%, a meaningful difference on profit, which is the core reason businesses establish there.

Is the 15% rate going to disappear after 2027?

No, it's confirmed through 31 December 2027, and from 2035 it's set to widen to nearly all FTP enterprises as the port completes its build-out. 2035 is when the benefit broadens, not when it ends.

What counts as an 'encouraged industry'?

Hainan promotes sectors such as tourism, modern services and high-tech, plus its own additions. Your business scope has to align with the catalogue, we check whether your activity fits before you register.

What is the 60% income test?

To qualify, roughly 60% or more of your main-business income should come from encouraged activities. It's a condition worth planning your scope around from the start, which we advise on.

Can a Hainan company really be exempt from tax on some income?

Qualifying tourism, modern-services and high-tech companies can be exempt from corporate income tax on new income from outbound direct investment. Whether your sector and income qualify is something we assess case by case.

Do I need staff and an office in Hainan to get 15%?

Yes, the rate is for companies with genuine local operations, so real substance matters. We structure your setup so the substance is real and your eligibility is protected.

Hainan’s 15% Corporate Income Tax: How to Qualify in 2026 (Substance Rules Explained)

The Hainan 15% corporate tax rate at a glance

15 %corporate tax

25 %the rate you avoid

2027confirmed through

2035it widens

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.

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.

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.

Specific, net-new answers, not a repeat of the guide above.

The Hainan Free Trade Port 15% Corporate Tax, How to Qualify in 2026