High-tech firms relocating to Hainan to receive ¥5 mln incentive

To boost the high-quality development of China's southern Hainan Free Trade Port, starting September 11, high-tech firms relocating to Hainan Province will be eligible for a one-off incentive of up to 5 million yuan (about $773,000). The amount will be determined as either 5% of their investment in fixed assets or 10% of their investment in research & development over the 12 months following their relocation to the province, up to a maximum of 5 million yuan.

High-tech firms relocating to Hainan can submit applications and related documents to the local sci-tech management department and enjoy the above benefits, if they meet the following conditions:

(1) Hold currently valid certification as a high-tech enterprise

(2) Have completed the entire relocation process, and hold certification documents from the Department of Science and Technology of Hainan Province

(3) Remain in operation after their relocation to Hainan

(4) Complete required annual reports and other forms

(5) Make the incentive application within 2 years after relocating to Hainan

On June 1, 2020, China issued the master plan for the Hainan Free Trade Port, which focused on the high-tech industry along with the tourism and modern service industry with the goal of developing a modern industry system in the island province. With that aim in mind, Hainan has implemented a number of policies to support the development of high-tech enterprises, including allowing high-tech enterprises to enjoy preferential zero-tariff policies, rewarding newly established high-tech enterprises and those with increasing R&D investment with financial incentives, reducing and exempting property tax and urban land use taxes for targeted corporations, and more.