Practice Areas

The Ministry of Finance and the State Administration of Taxation jointly issued the Circular on the preferential policies of Enterprise income tax in Hainan Free Trade Port (June 23, 2020)

Department of Finance of Hainan Province, Bureau of Taxation of Hainan Province, State Administration of Taxation: 
In order to support the construction of a free trade port in Hainan, the relevant preferential policies for enterprise income tax are hereby notified as follows: 
I. for encouraged industrial enterprises registered in Hainan Free Trade Port and operating substantially, the enterprise income tax shall be levied at a reduced rate of 15%. 
The term “encouraged industrial enterprises” as mentioned in this Article refers to enterprises whose main business is the industrial projects specified in the catalogue of encouraged industries in Hainan Free Trade Port, and their main business income accounts for more than 60% of the total income of the enterprise. The so-called substantive operation means that the actual management organization of the enterprise is located in Hainan Free Trade Port and implements substantive and comprehensive management and control over the production and operation, personnel, accounts and property of the enterprise. Enterprises that are not in line with substantive operation shall not enjoy preferential treatment. 
The catalogue of encouraged industries of Hainan Free Trade Port includes the guidance Catalog of Industrial structure Adjustment (2019), the catalogue of Industries encouraging Foreign Investment (2019 Edition) and the catalogue of new encouraged industries of Hainan Free Trade Port. If the above catalogue is revised within the implementation period of this Circular, the new version shall be implemented as of the date of implementation of the revised version. 
For eligible enterprises whose head offices are located in Hainan Free Trade Port, the 15% tax rate shall be applied only to the income of their head offices and branches in Hainan Free Trade Port, and 15% tax rate shall be applied to enterprises whose head offices are located outside Hainan Free Trade Port. 15% tax rate shall be applied only to the income of qualified branches located in Hainan Free Trade Port. The specific measures for collection and administration shall be implemented in accordance with the relevant provisions of the State Administration of Tax. 
2. Income derived from new foreign direct investment of tourism, modern service and high-tech industrial enterprises established in Hainan Free Trade Port shall be exempted from enterprise income tax.

 The income from additional foreign direct investment mentioned in this Article shall meet the following conditions: 
(1) the operating profits obtained from the newly established overseas branches, or the dividend income corresponding to the new overseas direct investment if it is redistributed from overseas subsidiaries with a shareholding ratio of more than 20% (including). 
(2) the statutory tax rate of enterprise income tax in the invested country (region) shall not be less than 5%. 
The term “tourism”, “modern service industry” and “high-tech industry” mentioned in this Article shall be carried out in accordance with the catalogue of industries encouraged by Hainan Free Trade Port. 
3. For enterprises established in Hainan Free Trade Port, if the unit value of newly purchased (including self-built or self-developed) fixed assets or intangible assets does not exceed 5 million yuan (inclusive), it is allowed to be included in the current cost and deducted when calculating taxable income, and depreciation and amortization will no longer be calculated on an annual basis. Newly purchased (including self-built or self-developed) fixed assets or intangible assets with a unit value of more than 5 million yuan may shorten the number of years of depreciation or amortization or adopt the method of accelerating depreciation and amortization. 
The term “fixed assets” as mentioned in this Article refers to fixed assets other than houses and buildings. 
IV. This Circular shall enter into force from January 1, 2020 to December 31, 2024.


With its rich international trade expertise, legal literacy and professional experience, baiju’s compliance team serves customers in many fields, such as pharmaceuticals, energy, telecommunications, aviation, rail transit, automobiles, luxury goods, consumer goods, industrial manufacturing, shipping, cross-border e-commerce, and so on.

Litigation & Arbitration

Baiju’s litigation and arbitration team has rich experience in representing litigation, arbitration, enforcement cases and handling emergencies. 

We will first advise our customers on how to avoid disputes, and then we will put forward thoughtful solutions when they are involved in disputes, so that they can gain a favorable position in the dispute resolution process. While committed to helping customers win disputes, we are also very skillful in using oriental wisdom to help customers and disputing parties achieve reconciliation, so as to minimize the cost of dispute resolution. 

We are always committed to making clear and direct suggestions to our customers, and taking into account our international vision and local experience, we adopt pragmatic strategies to assist our customers in presenting their justifications and pursuing their best interests in the most effective way.

Shipping & Maritime

As the oldest legal department in the world, the legal practice of maritime and maritime merchants has always been closely related to shipping, international trade, international settlement, insurance and other related fields. Baiju’s maritime and maritime legal team has provided effective and high-quality services to many customers at home and abroad in all kinds of maritime affairs extended and derived from international trade, shipping, international settlement and insurance activities.

Company Registration

To conduct corporate transactions in today’s changing business and regulatory environment, you need professional knowledge, talent, and decision-making partners to help you achieve your goals. 
We have a forward-looking solution and will work with you to create novel solutions to help you gain benefits and control risks at the same time. 
From due diligence to the formation of strategic planning, to the integrated solution after project delivery, we work side by side with you to effectively assist you to meet your business needs. Our practical approach is combined with reliable, constructive and responsive legal advice so that you can successfully overcome difficulties at critical moments. 
Based on our expertise in project transactions, a deep understanding of the industry, and our extensive experience in providing legal services to global, national and emerging companies, we will make the best use of our global network and local expertise to meet any of your needs.

Real Estate

No matter where you are in today’s competitive real estate market, it is essential for you to get advice from a global perspective. You need a team to help you master such a rapidly changing legal environment that has become more complex due to many cross-border problems. Whether you are an investor, a lender, a developer, a landowner or a lessee, a buyer or seller of real estate, you are well aware of the challenges of the market-so, you need an experienced consultant who understands all your real estate problems and needs to help you. 
Baiju has a wealth of local, regional and global experience and expertise to help you successfully complete your real estate project. We are committed to working together to bring you global real estate services and in-depth and unique insights into the local real estate situation. Opportunities wait for no one, we hope to be able to stand by your side to respond to market trends and changes quickly and timely, and help you take every step of your career together. 
Whether you need experts in real estate leasing, project financing, acquisition and disposal, development, construction or investment, or a smart consultant to resolve a real estate dispute, the serious and responsible experts of our global team are more than willing to help you succeed. If your business needs exceed the real estate sector, Baiju has legal experts in all business areas to serve you in all countries and regions, including bankruptcy and debt adjustment, environmental compliance, corporate structure, taxation and cross-border affairs, and so on.

HaiNan Free Trade Port Investment Guide

By the end of 2019, Hainan’s GDP reached 530.894 billion yuan, an increase of 5.8% over the same period last year. The 4-hour flight time can cover 21 countries and geographical regions, and the 8-hour flight time can cover 59 countries and regions.

It has three leading industries: tourism, modern service industry and high-tech industry, and 12 key industries, such as tropical high-efficiency agriculture, Internet, medical and health industry, convention and exhibition industry, modern logistics industry, oil and gas industry, pharmaceutical industry and low-carbon manufacturing industry.

The overall requirement is to set standards for high-level international economic and trade rules, and to build Hainan Free Trade Port into a bright banner and an important open door leading China’s opening to the outside world in the new era.

We will strive to further optimize and improve the open-door policy and relevant institutional arrangements by 2035, fully realize free and convenient trade, free and convenient investment, free and convenient flow of cross-border capital, free and convenient entry and exit of people, free and convenient transportation, and safe and orderly flow of data.

Freedom and convenience in six aspects

Free and convenient trade, freedom and convenience of investment, free and convenient flow of cross-border funds, freedom of entry and exit of personnel, free and convenient transportation, safe and orderly flow of data.

Enterprise compliance | What should an enterprise do when faced with criminal prosecution by procuratorial organs?

The reform of the applicable mechanism of relative non-prosecution of enterprise crimes carried out by the Supreme people’s Procuratorate undoubtedly provides a new way for enterprises. The reform of the applicable mechanism for relative non-prosecution of enterprise crimes is one of the contents of enterprise criminal compliance, that is, enterprises violate the criminal law and face charges from procuratorial organs. If enterprises actively cooperate with the investigation of procuratorial organs, procuratorial organs require enterprises to establish a sound compliance system according to the problems that arise. Through the examination of procuratorial organs, procuratorial organs can suspend prosecution against enterprises and set an examination period for enterprises during the examination period. The enterprise is running well, the compliance system has played a role, the enterprise does not have the previous problems, the procuratorial organs can reach a settlement with the enterprise, after the enterprise pays the settlement, the procuratorial organ decides not to prosecute the enterprise, and the criminal charges faced by the enterprise are terminated. 
At present, the Supreme people’s Procuratorate has carried out this reform pilot project in some grass-roots procuratorates, which has achieved good results and will be popularized throughout the country in the future.

In this system reform, there is a very important term is compliance supervisor, also known as compliance supervisor. Compliance supervisors are generally served by law firms, and procuratorial organs and judicial organs select law firms that meet the requirements and establish a list of compliance supervisors. 
After the procuratorial organ puts forward the request of relative non-prosecution against the enterprise, the prosecutor shall select the supervisor in the list of compliance supervisors, or the enterprise shall select the supervisor in the list of supervisors, which shall be approved by the procuratorial organ. The supervisor will be stationed in the enterprise, conduct a detailed internal investigation of the enterprise’s compliance, find out all the risk points and risk areas of the enterprise, hand over the responsible person, and form a complete rectification plan and a detailed special compliance plan to be submitted to the procuratorial organs. after the procuratorial organ has approved it, the procuratorial organ decided to suspend the prosecution of the enterprise, requiring the enterprise to carry out rectification and reform, and be supervised by the supervisor. The supervisor will be stationed in the enterprise again, continue to follow and supervise the enterprise to carry out rectification and reform, help the enterprise to establish a special compliance plan and compliance system, and submit periodic compliance progress plans to the procuratorial organs on a regular basis, submit an overall report on compliance construction before the end of the inspection period. After examination and approval of the compliance construction of the enterprise, the procuratorial organ can decide to reach a settlement with the enterprise, the enterprise pays the settlement fund, the procuratorial organ decides not to prosecute the enterprise, the enterprise avoids criminal prosecution, and avoids severe punishment for the enterprise. enterprises can continue to produce and operate.