Home | Hotels | Hotels Video | China Flights | China Train Tickets | Main cities | China map | Contact us | Reservation Status  

 China Law information


PROVISIONS OF THE STATE COUNCIL CONCERNING THE ENCOURAGEMENT OFINVESTMENT IN DEVELOPING HAINAN ISLAND

PROVISIONS OF THE STATE COUNCIL CONCERNING THE ENCOURAGEMENT OFINVESTMENT IN DEVELOPING HAINAN ISLAND This English document is coming from "LAWS AND REGULATIONS OF THE PEOPLE'S REPUBLIC OF CHINA GOVERNING FOREIGN-RELATED MATTERS" (1991.7) which is compiled by the Brueau of Legislative Affairs of the State Council of the People's Republic of China, and is published by the China Legal System Publishing House.

In case of discrepancy, the original version in Chinese shall prevail.

Whole Document PROVISIONS OF THE STATE COUNCIL CONCERNING THE ENCOURAGEMENT OF INVESTMENT IN DEVELOPING HAINAN ISLAND (Promulgated on May 4, 1988) Article 1 These Provisions are formulated with a view to absorbing investment from within and without so as to accelerate the development and construction of Hainan Island.

Article 2 The State implements more flexible open economic policies for Hainan Special Economic Zone and endows the People's Government of Hainan Province with greater decision-making power.

Article 3 The State encourages enterprises, other economic organizations or individuals at home and from abroad (hereinafter referred to as investors) to invest in the development of Hainan Island and establish various economic and social undertakings.

Article 4 The State shall protect investors' legitimate rights and interests according to law, and shall not nationalize or requisition the assets of the investors. Under special circumstances, where public interests call for action, the State may resort to requisitioning in accordance with legal procedures and due compensation shall be made. Investors shall abide by China's laws and regulations.

Article 5 Investors may make investment and conduct operations on Hainan Island in the following forms: (1) making investment in establishing equity joint ventures, Chinese- foreign contractual joint ventures, foreign-capital enterprises (hereinafter referred to as enterprises with foreign investment) as well as other kinds of enterprises permitted by law. The period of operation for any kind of enterprise shall be specified in the contract by the parties of investment through consultation or approved by the relevant competent authorities; (2) purchasing shares, bonds and other negotiable securities; (3) operating enterprises through purchasing, holding shares, contracting or leasing; (4) investing and operating in the investment modes obtaining throughout the world, conducting economic and technological cooperation and exchanges.

Article 6 The use of State-owned land on Hainan Island shall be non-gratuitous. The People's Government of Hainan Province may, according to law, grant non gratuitously the right to the use of the State-owned land to investors.

The duration of right granted to land-use shall be laid down in the contract in accordance with the specific conditions of different industries and projects, with a maximum duration of 70 years; where there is the need to continue using the land after the expiry of the contract, the duration may be extended upon approval.

Investors may, in keeping with the relevant provisions of the State, transfer non-gratuitously the right granted to land-use.

Article 7 Mineral resources on Hainan Island shall be exploited with compensation according to law. The exploitation of some mineral resources specifically designated by the State shall be subject to approval by the relevant competent authorities of the State; the exploitation of other mineral resources shall be subject to approval by the People's Government of Hainan Province. Investors are allowed to explore and develop the mineral resources by setting up equity joint ventures, contractual joint ventures, or foreign-capital enterprises.

Article 8 Investors may, in the form of an equity or contractual joint ventures, invest in the construction of infrastructure on Hainan Island such as ports, wharves, airports, highways, railways, power stations, coal mines and water conservancy projects or may also engage in facilities with exclusive investment. They may also invest in various business and service enterprises related to the above-mentioned facilities in accordance with the relevant regulations of the State to undertake comprehensive operations.

Article 9 Foreign-capital banks, banks with joint Chinese and foreign investment or other financial institutions may be set up on Hainan Island with the approval of the People's Bank of China in light of the needs of economic development.

Article 10 The investment in the establishment of various economic and social undertakings on Hainan Island shall be subject to examination and approval by the People's Government of Hainan Province. Where the investment scope and total amount exceed the authorization by the State, the investment shall be submitted for examination and approval according to the procedures laid down by the State.

Article 11 The importation of building materials, production and managerial equipment as investment of an enterprise whose establishment has already been approved, the importation of raw materials, accessories and parts, packaging materials and other materials and items required for production and operation, and the importation of means of transport and office equipment for enterprise's own use, are to be examined and approved by the People's Government of Hainan Province itself.

Article 12 The enterprise income tax shall be levied at a rate of 15 percent on the income derived from production, operation and other sources by enterprises established on Hainan Island (State banks and insurance companies excepted). In addition, a local surtax of 10 percent of the assessed income tax shall be levied. Among the above-said enterprises: (1) those engaged in the construction and operation of infrastructures such as ports, wharves, airports, highways, railways, power stations, coal mines and water conservancy projects etc., and those involved in agricultural development, with an operation period of 15 years or longer, shall enjoy a five-year income tax exemption beginning from the first profit-making year, and shall be granted a 50 percent reduction in income tax from the sixth to the tenth year; (2) those engaged in industrial, communications and transportation and other production enterprises with an operation period of 10 years or longer, shall enjoy a two-year income tax exemption starting from the first profit-making year and shall then be granted a tax reduction by one half from the third to the fifth year; those acknowledged by the People's Government of Hainan Province as technologically advanced shall further enjoy a tax reduction by one half from the sixth to the eighth year; (3) after the expiration of the stipulated period for the reduction of or exemption from enterprise income tax according to the State, enterprises engaged in industry, agriculture, and other production businesses, shall have their enterprise income tax reduced to 10 percent in the year when the value of their export products amounts to 70 percent or more of their output value of that year; (4) those involved in service trades, with a total investment of or over US$ 5 million or CNY 20 million yuan and an operation period of 10 years or longer, shall be exempt from enterprise income tax in the first profit- making year and enjoy a 50 percent reduction in income tax in the next two years.

Reduction of or exemption from local income tax for enterprises within Hainan Island shall be determined by the People's Government of Hainan Province.

Article 13 For investors from outside China who have no offices on Hainan Island, a 10 percent income tax shall be levied on their dividends, interests, rents, franchise, royalties and other incomes derived from the island except those exempt from income tax according to law. The People's Government of Hainan Province shall decide as to who are to enjoy income tax reduction or exemption.

Article 14 Enterprises with foreign investment and enterprises with 25 percent of their shares held by foreign businessmen shall enjoy the right to conduct import and export operations, and other enterprises may enjoy the same right, if so approved by the People's Government of Hainan Province - i.e.

to import the goods necessary for the production and operations of their enterprises, and export their own products.

Article 15 Customs duty, product tax and value-added tax shall be exempted on the machinery and equipment, raw materials and parts, means of transport and other materials and items as well as office equipment that the enterprises within Hainan Island need to import for their own production and operations.

Customs duty, product tax or value-added tax shall be reduced by one half on the goods imported for sale on the market in Hainan by enterprises on the island.

Article 16 The State encourages enterprises on Hainan Island to export their manufactured products. Products manufactured by enterprises to be exported shall be exempt from export duties, and product tax or value- added tax already collected thereon shall be reimbursed, except for crude and refined oil, as well as a few other products specifically designated by the State.

Article 17 The products manufactured by enterprises on Hainan Island and to be marketed in Hainan are exempt from product tax or value-added tax, whereas mineral oil, tobacco, liquor and a few other products specially designated by the People's Government of Hainan Province are subject to a 50 percent product tax or value-added tax. Where the manufactured products contain certain imported parts and materials, customs duty, product tax or value- added tax shall be exempted or levied retroactively in accordance with the stipulations of Article 15.

Products manufactured by the aforesaid enterprises and to be marketed to other parts in China, may be sold by enterprise themselves, except for products whose importation is restricted by the State and which are subject to approval in accordance with the relevant regulations of the State. But product tax or value-added tax shall be levied on these products according to relevant provisions. Customs duties, product tax or value-added tax on the manufactured products containing imported parts and materials shall be levied retroactively in accordance with relevant stipulations.

Where the enterprises with foreign investment within Hainan Island are to sell on the domestic market their products which conform to the standards specified in the methods governing import substitution by the State, they may apply to sell their products as import substitutes.

Article 18 Foreign exchange earnings derived by enterprises within Hainan Island from their product export and from other business activities, may be retained in foreign currency as earned and shall be handled in keeping with the regulations of the local People's Bank of China. The enterprises may adjust the surplus and deficits of their foreign exchange and effect a balance of foreign exchange receipts and disbursements at the foreign exchange adjustment markets located on Hainan Island or in other parts of China.

Article 19 Investors from abroad may freely remit from the enterprise's foreign exchange deposit account at the bank the profits they earn from the enterprises they set up on Hainan Island. The amount remitted shall be exempt from income tax.

Investors from abroad who reinvest the profit they earn from their enterprises within the Island, for a period of not less than five years shall enjoy a reimbursement of 40 percent of the income tax paid on the amount to be reinvested, and 100 percent of the income tax already paid on the amount to be reinvested shall be reimbursed if the investors elect to reinvest their profit earnings in the construction of infrastructure and agricultural development enterprises, export-oriented and technologically - advanced enterprises within the Island.

Investors from other parts of China shall be free to remit their profit earnings from the enterprises on the Island. And no retroactive income tax shall be levied on the profit earnings remitted to other parts of China within ten years beginning from the first profit-making year.

Article 20 When coming to Hainan Island to negotiate investment or trade, promote economic and technological exchange, visit relatives or to tour, foreigners from countries or regions having diplomatic relations or official trade links with China, may apply for entry visas at the port of Haikou or Sanya if their stay in Hainan does not exceed 15 days; those who need to stay in Hainan longer or who want to go on to other parts of China on justifiable grounds, may apply for an extension of visa or obtaining an additional visa endorsement according to relevant provisions.

Foreigners who permanently live on Hainan Island, or who invest in the establishment of local enterprises or participate in the development of the island, and their accompanying family members may upon application be granted multiple entry visas by the authorities concerned under the People's Government of Hainan Province.

Article 21 Compatriots from Hong Kong, Macao and Taiwan as well as overseas Chinese holding valid passports or documents issued by the competent authorities under the State Council or by their authorized agencies may come to Hainan Island or proceed to other places within China without visas. Compatriots from Taiwan may, at the ports in Hainan Island, directly apply for Travel Certificate for Compatriots from Taiwan.

The People's Government of Hainan Province is authorized to examine and approve the dispatch abroad of personnel by domestic organizations in Hainan Province that are to set up economic, trade or tourism offices or to establish enterprises abroad, except otherwise provided by the State.

Article 22 Matters not covered in these Provisions may be handled by the People's Government of Hainan Province according to the provisions concerning special economic zones. The rules for the implementation of these Provisions shall be formulated by competent departments under the State Council in conjunction with the People's Government of Hainan Province.

Article 23 These Provisions shall enter into force as of the date of promulgation.


Search China Hotels China Hotels:
Please Select a City:
Find Your Hotel With China Map
Check-in:
Show Calendar
Check-out:
Show Calendar
Currency Adults Child

Search China Flight Ticket China Flight:
One Way Round-Trip
Departure city:
Destination:
Departure date:
Return date:



China Cities:
China Introduction
Beijing Travel Info
Changchun Travel Info
Changsha Travel Info
Chengde Travel Info
Chengdu Travel Info
Chongqing Travel Info
Dali Travel Info
Dunhuang Travel Info
Guilin Travel Info
Haikou Travel Info
Hangzhou Travel Info
Harbin Travel Info
Nanning Travel Info
Ningbo Travel Info
Qingdao Travel Info
Shanghai Travel Info
Shenyang Travel Info
Shenzhen Travel Info
Suzhou Travel Info
Taian Travel Info
Tianjin Travel Info
Weihai Travel Info
Wuyishan Travel Info
Xiamen Travel Info
Xian Travel Info
Yangzhou Travel Info
Zhuhai Travel Info

China Hotels
Aksu
Alxa
Anqing
Anshan
Anshun
Anyang
Baishan
Baoding
Baoji
Baotou
Bazhong
Beidaihe
Beihai
Beijing
Bengbu
Binzhou
Bozhou
Cangzhou
ChangChun
Changde
Changsha
Changshu
Changzhi
Changzhou
Chaohu
Chaoyang
Chaozhou
Chengde
Chengdu
Chenzhou
Chifeng
Chongqing
Chuxiong
Chuzhou
Cixi
Dali
Dalian
Dandong
Daqing
Datong
Daxinanling
Daye
Dehong
Dengfeng
Deyang
Dezhou
Dongguan
Dongxing
Dongying
Dujiangyan
Dunhuang
Emeishan
Enshi
FangChengGang
Fenghua
Fenghuang
Foshan
Fuding
Fushun
Fuyang
Fuzhou
Ganzhou
Guang'an
Guangyuan
GuangZhou
Guilin
Guiyang
Haikou
Haining
Handan
Hangzhou
Harbin
Hefei
Hegang
Heihe
Hengshui
Hengyang
Hetian
Heyuan
Heze
Hohhot
HongKong
Huaian
Huaibei
Huaihua
Huainan
Huangshan
Huangshi
Huizhou
Hulunbeier
Huzhou
Ji'an
Jiamusi
Jiangmen
Jiangyin
Jiaozuo
Jiaxing
Jiayuguan
Jieyang
Jilin
Jinan
Jincheng
Jingdezhen
Jinggangshan
Jingmen
Jingzhou
Jinhua
Jining
Jinzhong
Jiuhuashan
Jiujiang
Jiuquan
Jiuzhaigou
Jixi
Jiyuan
Kaifeng
Kaiping
Karamay
Kashen
Korla
Kunming
Kunshan
Langfang
Lanzhou
Leshan
Lhasa
Lianyungang
Liaocheng
Liaoyang
Lijiang
Linfen
Linyi
Lishui
Liuzhou
Longyan
Loudi
Luoyang
Lushan
Maanshan
Macau
Maoming
Meishan
Meizhou
Mianyang
Mudanjiang
Nanchang
Nanchong
Nanjing
Nanning
Nanping
Nantong
Nanyang
Ningbo
Ningde
Ordos
Panjin
Panzhihua
Penglai
Pingxiang
Pingyao
Putian
Putuoshan
Qian'nan
Qiandaohu
Qiandongnan
Qidong
Qingdao
Qingyuan
Qinhuangdao
Qionghai
Qiqihaer
Qitaihe
Quanzhou
Qufu
Qujing
Quzhou
Rizhao
Ruian
Sanmenxia
Sanming
Sanya
Shanghai
Shangrao
Shangri-la
Shantou
Shanwei
Shaoguan
Shaoshan
Shaoxing
Shenyang
Shenzhen
Shijiazhuang
Shishi
Shiyan
Shouguang
Suining
Suizhou
Suqian
Suzhou(Jiangsu)
Taian
Taicang
Taiyuan
Taizhou(Jiangsu)
Taizhou(Zhejiang)
Tangshan
Tengchong
Tianjin
Tianshui
Tieling
Tonghua
Tongliao
Tongling
Tongren
Turpan
Urumqi
Wanning
Weifang
Weihai
Weinan
Wenshan
Wenzhou
Wuhai
Wuhan
Wuhu
Wuwei
Wuxi
Wuyishan
Wuzhishan
Wuzhou
Xiamen
Xian
Xian'ning
Xiangfan
Xiangtan
Xianyang
Xiaogan
Xichang
Xilinhot
Xingyi
Xining
Xinxiang
Xinyu
Xinzhou
Xishuangbanna
Xitang
Xuchang
Xuzhou
Ya'an
Yancheng
Yandangshan
Yangjiang
Yangquan
Yangshuo
Yangzhou
Yanji
Yantai
Yibin
Yichang
Yichun
Yichun(Jiangxi)
Yinchuan
Yingkou
Yining
Yiwu
Yixing
Yiyang
Yongzhou
Yueqing
Yueyang
Yulin(Guangxi)
Yulin(Shaanxi)
Yuncheng
Yunfu
Zaozhuang
Zhangjiagang
Zhangjiajie
Zhangjiakou
Zhangzhou
Zhanjiang
Zhaoqing
Zhengzhou
Zhenjiang
Zhongshan
Zhongwei
Zhoukou
Zhoushan
Zhouzhuang
Zhuhai
Zhuji
Zhuzhou
Zibo
Zigong
Zunyi
| Home | Hotels | Hotels Video | China Flights | Flights Schedule | Pickup Service | Travel Packages | Affiliate | Add your hotels | Interprete Italiano-Cinese | Contact | Site Map | Link | FAQ | About Us
Copyright © 2001-2024 China Hotels Reservation - All Rights Reserved
Europe Office: ChinaHotelsReservation- Via Gerolamo Forni 64 - 20161 Milano - Fax 0291390522
China Office: China Travel(Hualv) Business co.,Ltd. - Tel 0086-577-88555070 Fax 0086-577-88522570
Xishan Donglu Xicen Gongyu 7 Zhuang 802 - 325005 Wenzhou China