Hainan Free Trade Port Law Released A Number Of Favorable National Integration Authorization, Hainan Will Put Forward A List Of Free Trade Port Regulations

The law of Hainan free trade port of the people's Republic of China was recently promulgated and implemented. Wang Chaoying, a member of the Standing Committee of the National People's Congress, pointed out at the press conference of the office of the State Council of the people's Republic of China on June 21, that the enactment of the law on Hainan free trade port is to provide a legal basis for Hainan free trade port to realize system integration and innovation, and promote reform in a systematic and coordinated way, which further demonstrates China's determination to open up to the outside world and promote economic globalization.

Feng Fei, governor of Hainan Provincial People's government, said that he would timely formulate specific measures to be formulated by Hainan Province in the free trade port law, make good use of the formulation power granted by the free trade port law, innovate the legislative working mechanism, speed up the formulation of supporting laws and regulations, and transform the important principles and requirements determined by laws into practical, practical and effective specific institutional measures, Ensure that the legal system is practical, effective and easy to use.

"Compared with the executive level of practical level, Hainan free trade port law is of greater significance at the strategic level, reflecting the main keynote of Hainan free trade port as the highest level of opening up." Zhang Lanlan, managing partner of KPMG in Hainan, China, pointed out to the 21st century economic reporter that the law has for the first time given Hainan Province the power to formulate laws and regulations involving the central authority, and also for the first time given the provincial government the right to reform. It has established core systems such as trade liberalization and investment liberalization and facilitation, which will effectively improve the stability of the policy level, It is more conducive to enterprises' long-term investment in Hainan.

The law of Hainan free trade port of the people's Republic of China was recently promulgated and implemented- Photo by Gan Jun

Devolution of legislative power at three levels to Hainan

On the one-year anniversary of the release of the overall plan for the construction of Hainan free trade port, the law on Hainan free trade port has been deliberated by the Standing Committee of the National People's Congress for many times, and was approved by a full vote at the 29th meeting of the 13th Standing Committee of the National People's Congress. Wang Chaoying said that the law has many bright spots.

In particular, in terms of authorized legislation and administrative authority, the State shall establish a leading mechanism for the construction of Hainan free trade port and an administrative system suitable for the construction of Hainan free trade port. The State Council and its relevant departments shall, according to the needs, timely authorize or entrust Hainan people's government and its relevant departments to exercise relevant administrative functions and powers, and authorize Hainan Provincial People's Congress and its Standing Committee to formulate laws and regulations on Hainan free trade port in accordance with this Law and in light of actual needs.

According to Wang Chaoying's explanation, the power of Hainan Provincial People's Congress and its Standing Committee to formulate laws and regulations for Hainan free trade port can be divided into three levels. In addition to the power to formulate local laws and regulations and the power to formulate laws and regulations for special economic zones, Hainan also has matters related to legal reservation in trade, investment and related management activities, and matters that should be formulated by the State Council, The power to formulate laws and regulations of Hainan free trade port“ This is a brand-new system design, which has never been done before. " Wang Chaoying said.

Zhang Lanlan pointed out that this is the first time that Hainan free trade port law has given Hainan Province the power to formulate laws and regulations concerning the central authorities' powers.

At the implementation level, Hainan free trade port law also gives the provincial government reform autonomy for the first time. Zhang Lanlan pointed out that the free trade port law provides integrated decentralization and authorization, leaving legal space for Hainan Provincial People's government and relevant departments, so as to avoid the discount of the implementation level of free trade port regulations due to vertical management, and give Hainan free trade port the largest space for reform and innovation.

Wang Chaoying also pointed out that the enactment of Hainan free trade port law is the actual need of providing legal basis for Hainan free trade port to realize system innovation and promote reform systematically and harmoniously from the national legislation level. The core of Hainan free trade port policy system is system innovation. It is necessary to actively explore and establish a more flexible and efficient supervision mode and management system to adapt to the construction of free trade port. Through the practice of system innovation, the legal system of Hainan free trade port is gradually formed under the premise of national legal system unification. The formulation of Hainan free trade port law is conducive to the top-level design of the functional orientation, operation mode and management mode of the free trade port, which is conducive to strengthening the systematicness and coordination of the system design, ensuring the stability and authority of policies and measures, avoiding the possible conflicts in the application of various laws and regulations at all levels, and making the various systems and measures cooperate and complement each other, Improve the overall efficiency of the system.

In addition, the law also establishes the core systems of trade liberalization and investment liberalization and facilitation. It is reported that as the basic law of Hainan free trade port, Hainan Free Trade Port Law stipulates various specific institutional arrangements focusing on Trade and investment liberalization and facilitation, including six core aspects: trade freedom and convenience, investment freedom and convenience, financial and taxation system, ecological environment protection, industrial development and talent support, and comprehensive measures.

Supporting laws and regulations will be issued as soon as possible

At present, the "parent law" for the construction of Hainan free trade port has been promulgated, while the relevant supporting laws and regulations system needs to be constructed.

According to the law of Hainan free trade port, the policy and system of free trade port shall be established step by step and in stages, so as to realize free and convenient trade, investment, cross-border capital flow, personnel in and out, transportation and safe and orderly flow of data. In order to achieve this goal, the law puts forward a series of supporting documents that need to be formulated by relevant departments of the State Council and Hainan Province. Cong Liang, deputy director of the national development and Reform Commission, said that the national development and Reform Commission will actively promote the research and formulation of these supporting documents with relevant parties, so as to mature, issue and implement these supporting documents.

Today, more legislative planning is pressing on the Hainan Provincial People's Congress and its Standing Committee, which were authorized by the state for the first time. Hu Guanghui, deputy director of the Standing Committee of Hainan Provincial People's Congress, said that he would seriously study and plan the composition of the "four beams and eight pillars" of the legal system for Hainan free trade port, put forward a list of important laws and regulations for Hainan free trade port, and organize the implementation in stages and steps. It is necessary to make arrangements for the supporting laws and regulations before and after the closure of the free trade port, especially in the aspects of free trade, investment, cross-border capital flow, personnel access, transportation, safe and orderly flow of data, fiscal and tax preferences, business environment optimization, ecological environment protection, industrial promotion and talent support, and risk prevention and control, We should plan and reserve a number of laws and regulations in advance, and formulate and implement the annual legislative plan.

He said that a number of supporting laws and regulations urgently needed for the construction of Hainan free trade port will be issued as soon as possible. Efforts are being made to draft, demonstrate and review a number of supporting laws and regulations, such as the regulations on optimizing the business environment of free trade ports, fair competition regulations, bankruptcy regulations, commercial cancellation regulations, expropriation and requisition regulations, and strive to issue them as soon as possible.

Hainan's legal basis is relatively weak, how to improve the quality and efficiency of legislation? Hu Guanghui disclosed that Hainan will promote legislative innovation, further broaden the channels for NPC deputies, enterprises and all sectors of society to participate in legislation in an orderly manner, and fully listen to public opinions. Strengthen the construction of grassroots legislative contact points and further smooth the "through train" of legislation. We will give full play to the role of members of the legislative Advisory Committee of Hainan free trade port and experts and scholars from all walks of life, and promote think tanks to provide more powerful intellectual support for the legislative work. In the form of legislation, more attention should be paid to some "small incision" legislation, "small quick Ling" legislation and "short regulations", so as to enhance the pertinence, practicability and operability of legislation.

We will not let the free trade port become a tax haven

Since the release of the overall plan for the construction of Hainan free trade port, Hainan has undoubtedly become the hottest land for investment in China. According to Peng Wei, deputy director of the Department of Commerce of Hainan Province on June 20, as of May 27, this year, there were 386000 new market entities and 171000 new enterprises in Hainan Province.

Journalists of the 21st century economic report have learned from many sources that the enthusiasm of private investment in Hainan is very high, and a large part of the reason is that they are running for the tax system.

Feng Fei, governor of Hainan Province, admitted at the same day's press conference that the main market players entering Hainan had a blowout growth, but the types of enterprises were complex and the good and bad were mixed, and some market entities took advantage of loopholes“ We have decided that we should do a good job in preventing tax risks from the very beginning, and resolutely prevent Hainan free trade port from becoming a "tax haven." Feng Fei said that Hainan has taken some measures to this end. On the one hand, it is necessary to strengthen the source control, control the registration, and establish and improve the risk identification and discovery mechanism. Starting from the enterprise registration process, establish the risk identification index system, and refine it to the industry, to the city and county. In the process of attracting foreign investment, we should correct the deviation of thinking and understanding such as eager for quick success and instant benefit. For the enterprises attracting investment, we should not only make clear the preferential tax policies, but also the threshold and conditions for enjoying them“ We don't want a shell company that's going to drill holes. "

In order to prevent the emergence of shell companies and prevent the erosion of tax base and profit transfer, it is necessary to adhere to the substantive operation, that is, the actual management organization of the enterprise is located in the free trade port, and the production and operation, personnel, finance, property and other aspects of the enterprise should be substantially and comprehensively managed and controlled.

Feng Fei said that in order to further refine the judgment criteria and management requirements for substantive operation, on March 5, this year, Hainan Taxation Bureau, Hainan provincial finance department and Hainan market supervision bureau jointly issued the announcement on issues related to the substantive operation of encouraged industrial enterprises in Hainan free trade port, from the two levels of resident enterprises and non resident enterprises, Detailed criteria for substantive operation.

In addition, the general office of Hainan provincial government issued the notice on issues related to standardizing financial and taxation policies for industrial support, which made it clear that no supporting policies directly linked to the tax paid by enterprises should be signed or issued. And establish and improve the early warning mechanism, relying on the social management information platform and tax information platform, early warning of some early problems of enterprise operation.

"In the next step, we will also improve the" double random and one open "supervision and credit supervision mechanism, improve information sharing, learn from international anti tax avoidance work experience, and take corresponding measures for relevant behaviors in accordance with the law and regulations." Feng Fei said.

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