Hainan Free Trade Port takes the lead in implementing "zero tariff" on some imported goods, and is exempt from import duties, import value-added tax and consumption tax. When conditions are ripe, after the island is closed in 2025, all imported goods other than the Catalogue of Imported Taxable Commodities will be exempted from import duties on the basis of degenerate tax system. The state shall draw up a catalogue of imported taxable commodities, and only the commodities listed in the catalogue are still subject to customs duties, while most other imported commodities outside the catalogue are exempt from import duties. The amount of duty-free shopping has increased from the current 30,000 yuan per person per year to 654.38+10,000 yuan per person per year, and the types of duty-free goods have been further expanded on the basis of the current 38 types of goods.

legal ground

Individual Income Tax Law of the People's Republic of China

Article 4 The tax rate of individual income tax is:

(1) For comprehensive income, the excess progressive tax rate of 3% to 45% is applicable (the tax rate table is attached);

(2) For operating income, the excess progressive tax rate of 5% to 35% shall apply (the tax rate table is attached);

(3) Income from interest, dividends and bonuses, income from property leasing, income from property transfer and accidental income shall be subject to the proportional tax rate of 20%.

The following personal income shall be exempted from personal income tax:

(a) science, education, technology, culture, health, sports, environmental protection and other aspects of the bonus. Awarded by the provincial people's government, the State Council ministries and commissions, China People's Liberation Army units at or above the military level, foreign organizations and international organizations;

(2) Interest on government bonds and financial bonds issued by the state;

(3) Subsidies and allowances issued in accordance with the unified provisions of the state;

(four) welfare funds, pensions and relief funds;

(5) Insurance compensation.

(6) Demobilized soldiers, demobilization fees and pensions;

(7) Resettlement fees, resignation fees, basic pension or retirement fees, resignation fees and retirement living allowances paid to cadres and workers in accordance with the unified provisions of the state;

(8) Income from diplomatic representatives, consular officials and other personnel of embassies and consulates in China who should be exempted from tax according to relevant laws;

(9) Income exempted from tax as stipulated in international conventions and agreements signed by the Government of China;

(ten) other tax-free income stipulated by the State Council.

The tax exemption provisions in Item 10 of the preceding paragraph shall be reported by the State Council to the NPC Standing Committee for the record.