In 2026, the tax policies of Hong Kong and Hainan Free Trade Port (Hainan FTP) show distinct differences, bringing different cost considerations for global investors. Hong Kong has implemented the global minimum tax system since 2025, levying a supplementary tax on multinational enterprise groups with an effective tax rate of less than 15% in Hong Kong to raise the tax rate to the 15% global minimum standard; its corporate profits tax adopts a progressive rate of 8.25% for the first HKD 2 million of assessable profits and 16.5% for the excess for legal persons, with strict compliance requirements such as mandatory electronic tax filing for covered groups. In contrast, Hainan FTP has a stable and attractive corporate income tax (CIT) policy for encouraged-industry enterprises: a unified 15% CIT rate (far lower than China’s national 25% CIT rate) is implemented, and this preferential policy is extended to the end of 2027, with a clear transition plan set for the post-2035 customs closure period. Hainan FTP also offers additional tax incentives for encouraged industries including tourism, modern services, and high-tech: enterprises in tourism, modern services and high-tech sectors enjoy exemption from CIT on newly added overseas direct investment income, and one-time deduction of costs and expenses for newly purchased fixed assets or intangible assets with a unit value of no more than RMB 5 million. As 2026 marks the first year of Hainan FTP’s full customs special operation, its tax policy stability and superimposed incentives form a unique competitive advantage for global investors expanding their business in China.
Beyond corporate tax, Hainan FTP’s 2026 zero-tariff policy and relaxed foreign investment access rules create more investment value than Hong Kong’s tax system. Hainan FTP has expanded its zero-tariff commodity catalog to more than 6,600 tax items in 2026, covering a wide range of imported goods for enterprise production and operation; eligible enterprises registered in Hainan FTP, as well as overseas personnel working and living in Hainan with residence permits, can enjoy zero-tariff benefits for imported goods within the list and quota scope, with a sound regulatory system to avoid double taxation for goods circulating between Hainan and the Chinese mainland. In terms of industry access, Hainan FTP has a more relaxed foreign investment negative list: enterprises outside the negative list adopt a filing system without separate approval, and fully foreign-owned operations are allowed in sectors such as vocational training institutions and international hospitals, breaking the access restrictions of many traditional sectors. Hong Kong, while maintaining a simple tax system, lacks such superimposed zero-tariff and industry opening policies, and its tax incentives are relatively single for industrial investment. In addition, Hainan FTP has optimized the company registration process with over 95% of procedures available online, qualified enterprises can obtain business licenses in as fast as 3 working days, and key park enterprises enjoy a “fast approval” green channel, greatly reducing the time cost of foreign investment entry.
For global investors looking to seize the tax and policy dividends of Hainan FTP, choosing a professional local service partner with cross-border experience is crucial – Tannet Hainan is the optimal choice with its deep Hong Kong roots and rich Hainan market experience. Hainan Tannet Enterprise Service Co., Ltd. is a core member of Tannet Group, a well-established enterprise service expert founded in Hong Kong in 1999. With decades of cross-border enterprise service experience, our team has an in-depth grasp of the latest tax policies, foreign investment registration rules and park-specific incentives of both Hong Kong and Hainan FTP, and maintains close cooperation with Hainan’s local tax authorities, market supervision and commerce departments. This unique Hong Kong-Hainan dual background enables us to accurately interpret the tax differences and compliance requirements between the two regions, and our professional bilingual team completely eliminates language and policy barriers for global investors, providing compliant and efficient one-stop support for every link of foreign-owned company registration and post-establishment operation in Hainan.
Tannet Hainan tailor-makes a full lifecycle agency service system for foreign investors registering and operating foreign-owned companies in Hainan FTP, covering all links from company establishment to daily operation and tax compliance, allowing investors to focus on business development without administrative burdens. In the registration phase, we provide one-stop services including enterprise name approval, compliant address screening, preparation and review of all application materials, online submission of industrial and commercial registration, simultaneous foreign investment filing, business license collection and official seal engraving, and simplify the document requirements for overseas investors (no notarization or authentication for eligible identity documents with official commitments). In the post-registration operation phase, we offer professional bookkeeping and tax filing services including daily accounting, zero tax filing for preparatory-stage enterprises, regular tax declaration, annual final settlement and related-party transaction filing; we also provide full support for foreign exchange registration, bank account opening (including professional guidance on FT accounts for cross-border capital flow) and foreign staff work permit application.
As a professional service partner with Hong Kong roots and in-depth Hainan market expertise, Tannet Hainan is committed to providing global investors with one-on-one personalized support including investment eligibility verification, policy clarification, customized registration planning and tailored compliance solutions. You can contact us via our hotlines: China hotline 86 755 82143181, Hainan hotline 898 65329504, Hong Kong hotline 852 2783 7818. Our Hainan office is located on the 12th Floor, Block B, Fengchen Waitan, No. 80 Binjiang Road, Meilan District, Haikou, Hainan Province.
Let Tannet Hainan be your reliable local partner to seize the huge growth opportunities of Hainan FTP and achieve your business layout in China with ease.