Tax and Financial Arrangements in the Construction of Hainan Free Trade Port

来源: 《CHINA FOREX》 2023 Issue 2 作者:XUE Jian

The construction of Hainan Free Trade Port involves many aspects,such as reform and opening-up,ecological civilization,international tourism consumption,and major national strategic services. In specific areas of economic development and social governance,it also covers policies,the rule of law,and the business environment. It is a major and complex social construction project.

As the Hainan Free Trade Port is set to close in 2025,specific measures for its construction are being continuously refined and implemented. As the term "free trade port" indicates, the essential focus is trading. The construction of a free trade port will be based on free and convenient international trade,forming a policy and institutional system with a focus on trade freedom and convenience. Another major focus of a free trade port is "freedom". Specifically,the freedom of Hainan Free Trade Port will be implemented in achieving free and convenient trade,investment,cross-border capital flow,personnel entry and exit,and transportation.

Characteristics of Tax and Financial Arrangements in World Free Trade Ports

Looking at the global free trade ports that have been built,such as China’s Hong Kong (hereinafter referred to as Hong Kong),Singapore,Dubai,and Rotterdam,these free trade ports not only serve as logistics and capital distribution centers for international trade,but also have relatively favorable tax systems and strong financial support. The business development of investment entities in the free trade port requires sufficient financial support to enable them to raise funds,while also retaining more profits for the company. These are two aspects that market entities are most concerned about. From another perspective,the construction of a free trade port cannot be achieved without competitive tax arrangements,comprehensive and thoughtful financial services,and even if the location of the free trade ports itself is one of the world's financial centers.

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