Hainan Adds 6.15 billion in Fiscal Revenue, Beating Expectations

In 2021, Hainan’s fiscal revenue increased by 6.15 billion yuan, exceeding the projected target at the beginning of the year.

According to the Department of Finance of Hainan Province, in 2021, Hainan fulfilled the general public budget target of over 92.1 billion yuan, crossing the threshold of 90 billion yuan, an increase of 12.9% (up 13.1% over 2019 and achieved an average growth of 6.4% over two years) and completing the annual budget of 109.6%. 

Last year, Hainan’s taxation departments have spared no efforts in implementing the tax reduction policies, including those enterprises in encouraged industries and engaging in substantive operations are entitled to CIT at a reduced tax rate of 15 percent; and the individual income tax rate is capped at 15 percent for ‘high-end’ and ‘urgently needed’ talents working in the Hainan FTP. Other tax reduction policies including the tax postponement for middle and small enterprises were also allowed companies and individuals to obtain tangible benefits. In 2021, the province’s local tax revenue reached nearly 74.3 billion yuan, an increase of 32.7%, and local tax revenue accounted for 80.7% of the province's general public budget revenue, further improving the balance and sustainability of fiscal revenue.