On June 21, Feng Fei, governor of the Hainan Provincial People’s Government, stated at the press conference of the State Council Information Office that the overall plan for the construction of the Hainan Free Trade Port was announced last year, and some preferential policies have been introduced one after another, and the main players entering the Hainan market have experienced a spurt of growth. It should be said that the types of enterprises are complex and mixed, and there are also individual market players who take advantage of the loopholes. We judged that we should prepare articles to prevent tax risks from the beginning, and resolutely prevent Hainan Free Trade Port from becoming a “tax haven.” The first is to strengthen source management and control, properly register and establish and improve risk identification and discovery mechanisms. Don’t even want a shell company that is exploiting the loopholes. The second is to control policy formulation. The third is to strengthen daily supervision. (China News Network)

For the big guys, the actual meaning is not big, mainly because it will have a certain restrictive effect for those who do not have enough choice. Unless the global tax incentives are consistent. Otherwise, the Hainan Free Trade Port cannot become a “tax haven”, there will always be a place that will become a “tax haven”, such as the Cayman Islands. Many companies whose business entities are in China, and companies listed on the Hong Kong Stock Exchange or the New York Stock Exchange are all registered in the Cayman Islands. Capital flows globally, and for people with many channels, there are many choices. There are so many offshore financial centers in the world, which will eventually cause market entities to slowly flow into other “tax swales” unless you make the world’s tax system consistent with yours. For example, there are many technology companies in the United States registered in the Cayman Islands, and the previous U.S. President Trump introduced policies, hoping that the tax revenue of these companies can flow back to the United States, but capital is profit-seeking. . Unless you let the FBI and the CIA put pressure on the local area to abolish the tax incentives in the Cayman Islands. Otherwise, many behaviors are wishful thinking.

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helpmekim
6 months ago

Tax haven? very funny1. With a Hainan account, can I access major countries in the world in both directions without barriers? 2. When opening an account in Hainan, can I freely exchange for mainstream currencies in the world? 3. Can entities established in Hainan be directly listed on the world’s mainstream capital markets without barriers? 4. Can the goods leaving and entering Hainan be tax-free in both directions? 5. Does Hainan have high-end service institutions that connect with global mainstream capital operations, wealth operations, and information operations at a high level? 6. How many major countries in the world have established embassies and consulates in Hainan? Where do you start with the so-called tax haven?

heloword
6 months ago

For decades, Hainan’s policy dividends have been wave after wave. Every big policy dividend is accompanied by investment speculation until the bubble bursts. In the 1980s, car smuggling closed the door of Hainan’s sudden opening of free trade; in the late 1980s and early 1990s, the crazy real estate bubble once again hurt Hainan’s vitality; in 2009, Hainan was approved as an international tourist island, which once again made the property market crazy . In the following ten years, the property market in Hainan has not stabilized. In 18 years, the concept of a free trade port once again made Hainan crazy. This time, real estate regulation closely followed every step of the construction of the free trade port, escorting the free trade port to land. Currently, the housing bubble has not yet emerged. However, this time Hainan is facing the problem of a “tax haven”. At the beginning of the year, I counted the registration places of star companies. Khorgos, once a tax haven for film and television companies, has become a thing of the past with policy tightening. In the days when the “paradise” was destroyed, some film and television cultural industrial parks in Shanghai and other places undertook the landing of a large number of film and television companies-although not as good as Horgos, there are also many tax and fee concessions, which is worse than none. However, since the Hainan Free Trade Port concept was implemented, a large number of star shell companies and film and television companies have gathered in Hainan. “Resolutely not let the Hainan Free Trade Port become a tax haven” this sentence is simple to say, I hope it can be done. Otherwise, Hainan’s policy dividend this time, I’m afraid it will be the same as before.

helpyme
6 months ago

I remember that tax avoidance is not always going to the Cayman Islands? I don’t know if Hainan Free Trade Port can become a tax haven. First look at which domestic giant companies are registered in the Cayman Islands: Tencent, JD, Baidu, Alibaba, Sina, Country Garden, Evergrande, Lenovo, NetEase, Mengniu, Huiyuan, Shanda, Li Ning, Anta, etc., even China Mobile, China Unicom’s subsidiaries are also registered in the Cayman Islands. Let’s take a look at which foreign giant companies are registered in the Cayman Islands: Apple, Coca-Cola, Procter & Gamble, Intel, Oracle, Facebook and so on. So far, I haven’t heard of any enterprises and companies going to avoid taxes here. Is this too much thinking? Unless it has a more favorable tax policy inclination than the Cayman Islands, it has no practical significance. Update, this article has the difference between Chinese and foreign registered companies and why they registered companies in the Cayman Islands. The Cayman Islands obtained a royal decree in 1978, which stipulates that the Cayman Islands will always be exempt from taxation obligations. Therefore, the Cayman Islands has no direct taxation at all, and no direct taxation is imposed on individuals, companies or trust industries. Therefore, it has also gained the reputation of “tax haven”. The Cayman Islands only levy import tax, stamp duty, business registration tax, tourism tax and other simple taxes, but never personal income tax, corporate income tax, capital gains tax, real estate tax and other direct taxes! In addition, the Cayman Islands has freedom of foreign exchange, and government departments strictly keep confidential the information of Cayman companies’ shareholders. This is one of the reasons why many domestic and foreign companies have established subsidiaries in the Cayman Islands.

sina156
6 months ago

At this critical moment when the whole world is competing for the return of manufacturing industries, shouldn’t Hainan take the lead in completely exempting taxes on the island? In order to seize a large number of enterprises to settle down and settle down, will the talents, capital, and opportunities still be worrying when the enterprises come?
Putting aside the advantages of great policies, doing things with fear and fear, and focusing on the development of real estate that the country has repeatedly ordered and five applications to restrict, this level of governance is really worth thinking about.

yahoo898
6 months ago

Some people have a misunderstanding of “tax avoidance” and “tax evasion.” Tax avoidance is the rational use of tax policies and is legal. Tax evasion is illegal, and serious cases may even commit crimes. Refer to Liu Xiaoqing. If Hainan Free Trade Port does not use real money to attract enterprises to settle down, what will it rely on? Not to mention that Hainan’s economic situation is worrying, consumption on the island itself is weak, and domestic demand is sluggish. Geographical conditions have no advantage over Jiangsu, Zhejiang and the Pearl River Delta, and they are already at a disadvantage in the face of hard power. We should abandon those real estate speculation ideas, honestly control housing prices, attract young people to settle down, and steadily run higher education.

leexin
6 months ago

I think the governor is right. Laws and laws have been stipulated, and of course they must be implemented according to law. Eligible companies have preferential treatment, but there will always be some companies that do not meet the requirements, especially those that do not operate in Hainan and only register shell companies. Look at the content of the speech, check the registration, policy, and strengthen daily supervision. There is nothing wrong with it, just to catch those companies that do not comply with the laws and regulations. Many answers commented that it would certainly not develop without giving comprehensive tax incentives. Wrong! Even if tax evasion is not investigated, tax avoidance will not develop! Shenzhen Qianhai is an example.

greatword
6 months ago

Ten years ago, the country also gave support to another border city, but under various benefits, it only took a roller coaster once, rushing to the sky, and falling to the bottom of the valley. You may not have been to that place, but you must have seen it. Horgos. In the theaters of previous years, almost every movie was accompanied by Horgos Fork Company. In September 2011, the State Council issued the “Several Opinions of the State Council on Supporting the Construction of the Kashgar Horgos Economic Development Zone”. After the release of the opinions, various preferential reductions and exemptions followed. As long as the newly registered companies from 2010 to 2020, And the business scope “Key Development Encouragement Catalog” can be enjoyed. Tax exemption for the first five years, and tax retained by the local government for the next five years will be refunded in the form of incentives. This is simply a discount for him to open the door for the discount, and the discount is home. Sure enough, capital moved to hear the wind and flooded into Khorgos. Even if the city does not even have office buildings, this does not stop them. Professional agency registration companies and professional teams will help them solve everything. Perhaps, you walk into a certain agency company and take out a booklet in the filing cabinet. There is a company in it. This is not an exaggeration or rhetoric. This is just plain truth. Everyone is like this. In the later stages, thousands of companies can be registered in a month, and they are still growing exponentially. Of course, the arrival of a large amount of capital has indeed boosted the economy. In 2017, Khorgos’s fiscal revenue reached 2.5 billion yuan, an increase of 75% year-on-year, and five times in five years. However, by 2017, the industrial output value was only 130 million yuan. Yuan, an increase of 19%, and GDP only increased by 15%, just like the famous phrase “If it is not necessary, don’t increase the entity”, it only recognizes the things that really exist, and thinks that those empty and universal methods are useless and cumbersome. , Should be “shaved off” mercilessly. For capital, the only thing that really exists is interest. Among the tens of thousands of enterprises added, only 2% of the entities actually operate. Most of the rest are cultural media companies. All well-known celebrity directors have a share. You may need to add a few thousand words to the answer after naming them. They are only stored in the folder of the agency company and will not be used for local development and construction. Direct physical contribution of one point. This data makes the leadership furious, but they can’t make a clean break. If they leave, then these 2% entities may also die. So at the end of 2017, the “Korgos Economic Development Zone Regulations” and a series of follow-up measures were promulgated, hoping to change the situation. But the capitalists have never thought about making a contribution to you, and they know the ways to deal with these measures too well. Even the hotels in Horgos have been registered with the company. As long as people of the age are hired, they will still enjoy the benefits if they spend a little more cost. However, the shamelessness and greed of some people are far beyond your imagination. Such a favorable situation is still a lot of tax evasion. Fan is a typical example. Now he retreats behind the scenes and can still use resources to push his own people to make money. This has also become the fuse of the rigorous investigation. A large number of star companies have begun to deregister, and as of 2019, more than 5,000 companies have been deregistered. Is it a bit familiar? After being exposed to yin and yang contract with Mou Shuang, it is exactly the same. They will never change, just like disgusting that 2.08 million a day is too low, this is the actor who fully interprets human nature. For Khorgos, he went round and round before returning to the starting point. The mayor of Horgos said publicly afterwards, “I admit that in the past I considered more economic development, pursued economic data, was eager for success, and had a competitive mentality when attracting investment.” This is a paragraph that paid a huge price. In fact, Hainan has also learned from the past. Because of the last bubble, the Hainan Development Bank went bankrupt, and the unfinished buildings were still standing next to the coconut trees on the west coast. Taking history as a mirror, Governor Feng Fei’s determination is admirable. Hainan is where I studied. When I was a student, I rode a bicycle with my friends. Haikou went to Sanya and rode all the way on the east route. It is a beautiful city. It is another jewel of our motherland.

loveyou
6 months ago

Since Hainan became a free trade port, many celebrities have established their own studios in Hainan, apparently to avoid taxation. This is a problem. Some people, in order to purchase goods, go to Hainan to buy things in large quantities, which leads to the normal development of the domestic market. Obstruction seriously affects economic development and undermines market order. The Hainan Governor’s move not only prevents tax evasion, but also increases housing prices in Hainan. It is the workers and local people who suffer. No matter how many policies are It’s not good for the people. No matter how good it sounds, it’s useless. I hope that Hainan Province will have a long snack. Don’t repeat the same mistakes. Don’t let the people down. Control housing prices, raise wages again, control prices, and let Hainan people. Living and working in peace and contentment, it’s not much stronger than this. Finally, which one to go to Hainan is not for tax exemption, or else, do you think there are any benefits for mutual encouragement?

strongman
6 months ago

That’s right. I remember that when Cai Chongxin was interviewing cnbc on behalf of Alibaba a few days ago, he gave the foundation of Hong Kong’s prosperity, namely “no capital gains tax”, “ultra-low personal income tax rate”, etc., which made xfh very excited. Shouting “reasonable, favorable, admirable, Alibaba’s highlight moment” However, this set of Hong Kong inherited from the British legacy of the colonial period, we Chinese do not eat the BBC underworld filter, let’s find another way and make a new one. Its own Hainan model, Hainan road!

stockin
6 months ago

Such a good speech was completely criticized, which shows that Zhihu has become a public opinion platform that represents the interests of certain groups. The purpose of establishing a free trade port in Hainan is to attract industrial capital. Industrial capital enjoys tax incentives in Hainan, not tax avoidance. So, what kind of capital is Hainan’s attack? Don’t you have any ideas? Such policy speeches have also been sprayed, and they are all sprayed. Such a public opinion platform and public opinion environment are really unique. It seems that some people still see it, just say a few more words. Zhihu, there is no essential difference from “paper clips”, under the banner of popular science, doing work of questioning. The only difference is that there are still people on Zhihu who refute the rumors, but the question is, why are the voices of doubt so loud? Moreover, Zhihu has been committed to pushing comments on platforms such as Weibo, Tieba, Douyin, etc., what is the reason? No other means that intellectuals want to occupy absolute dominance of public opinion, but are intellectuals really a group that can represent national interests? Knowing is an intellectual.

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