A Study on the Tax System of China’s Hainan Free Trade Port and Implications for Korea

Abstract

Purpose - The purpose of this study is to introduce the background, development plan, and status of China’s Hainan Free Trade Port. It also focuses on the details and characteristics of the latest implemented detailed regulations related to the tax system of the Hainan Free Trade Port. Design/Methodology/Approach -The latest documents and data in China, as well as the content of the latest plans and detailed regulations related to the construction of the Hainan Free Trade Port, were collected and analyzed. The study was conducted in parallel with literature research and jurisprudence research. Findings - In this study, the content and characteristics of the tax system of the Hainan Free Trade Port in China were analyzed in three aspects: the no-tariff system, the corporate income tax system, and the personal income tax system. In addition, several implications for the Korean government and industry were presented in terms of the tax system, the construction of free trade ports, and the competitive strategy of the duty-free market. Moreover, it suggested alternatives such as reviewing Korea’s tax system, examining companies entering Hainan, fostering human resources and cooperation in education, and cooperation with Korean-Chinese industry and the government. Research Implications - In the future, it is necessary to continuously monitor the systems and policies of Hainan’s development plan and discover pioneer areas where mutual cooperation can be achieved through exchange with the Hainan Free Trade Port.