Offshore Institution Tax Incentive
The offshore institution is exempted from all the following taxes: complementary tax, industrial tax, and stamp duties. In addition, the offshore institution's managers and specialized technicians (non-Macao residents), authorized to reside in Macao , are exempted from professional tax for the first three years of their employment at the offshore institution.
The Law no. 15/2018 published on 27 December 2018 terminates the application of offshore licenses, fixes the enforcement date of the repeal of the Offshore Regime, and introduces a number of facilitations, which mainly include that the existing Macao offshore institutions are still entitled to the income tax exemption until 31 December 2020, except for the profits arising from intellectual properties which are under specific regulations.
Please see the details in the following link of https://www.ipim.gov.mo/en/services/offshore-service/repeal-of-the-legal-regime-of-the-offshore-service/.
Tourism Industry Tax Incentive
Tourism incentives are related to the awarding of a “touristic utility” classification. The touristic utility of a project is assessed on its location, the level of facilities and services, management and promotion capacity, contribution to the training of staff as well as any other factors that may be considered as support to the development of tourism in Macao. Incentives are available to new projects and existing projects in respect of renovation work.
Projects that are classified as “touristic utility” shall benefit from tax exemptions and reductions as follows:
Exempted from property tax during the first eight operating years in Macao City or ten years in the Islands;
Exempted from industrial tax for a period equal to the property tax exemption;
Eligible for depreciation allowances at rates being double the maximum approved rates for a period equal to the property tax exemption; and
Reduction of stamp duty on property transfers and all facilities required for the project.
Manufacturing Tax Incentive
The following investments are entitled to a 50% reduction on profit tax rates, stamp duty on property transfers and are exempted from property tax and industrial tax:
Investments which increase the export of non-quota restricted goods.
Investments which install high technology and new industries.
Investments which will be located in non-traditional industrial areas.
According to the Government Budget of Financial Year, the following tax relief measures which are managed by the Financial Services Bureau:
Business Registration Tax
Exemption of business registration tax. ( since 2002 )
Land Rental
Exemption of land rental under MOP$100.00. ( since 2002 )
Property Tax
Standard deduction of MOP$3,500.00 on property tax. If the taxpayer is two or more natural persons (individuals), its property tax can be similarly deducted the aforementioned amount if and only if one of them is permanent resident of Macao SAR. If the taxpayer is a legal person, individual commercial entrepreneur or non-resident of Macao SAR, it is not eligible for such deduction.（since 2021 ）
(1) Exemption of property tax levied on residential units of Macau residents.(2) Property tax levied on properties registered for the purposes of offices, commercial, industrial, hotels and similar activities: Fixed deduction of MOP 3,500 ; Deduction of 25% on the remaining property tax (3) Fixed deduction of MOP3,500 on the payable property tax of Macau residents for other purposes not mentioned above.（ In 2020 ）
Standard deduction of MOP$3,500.00 on property tax. （From 2008 to 2019 ）
Standard deduction of MOP$500.00 on property tax. （From 2002 to 2007 ）
The urban property tax rate for leased premises will be reduced to 8%.( since 2019 )
Profits Tax
Exemption allowance for profits tax assessment is MOP$600,000.00. ( from 2014 to 2018 ; In 2021)
Exemption allowance for profits tax assessment in 2019 is MOP$600,000.00,additional deduction of up to MOP300,000 for tax payable. ( from 2019 to 2020)
Exemption allowance for profits tax assessment is MOP$600,000.00. ( In 2013)
Group A complementary income taxpayer will enjoy a triple reduction in profit tax for the first three million patacas of their research and development (R&D) expenditure, and a double reduction in profit tax for additional expenditure, subject to a ceiling of 15 million patacas.( since 2019 )
The income obtained or generated in Portuguese-speaking countries shall be exempt from Profits Tax, when the relevant profits tax have been paid in that countries.( since 2018 )
Interest obtained through state debt securities, which are issued in the MSAR, as well as income obtained from the purchase and sale, redemption or other availability, shall be exempt from the profits tax. ( In 2019 ; since 2018 )
Cash or goods donated in response to Coronavirus will be regarded as an expenditure or loss to the fiscal year if the taxpayer donates to social organizations of public interest and charitable organizations in Macau or in Mainland, as well as national institutions and their departments at or above country-level government in Mainland China. （ In 2020 ）
Salaries Tax
The annual professional tax deduction is to be deducted at a fixed percentage of 30%. ( since 2013 )The exempted amount is set at MOP$144,000. ( since 2011; From 2008 to 2010: MOP$120,00.00 )
If a casual worker’s salary exceeds MOP$640 per day（ In 2020：MOP$686）, or the employee’s monthly income exceeds MOP$16,000（ In 2020：MOP$17,143）, the employer has to withhold their salary. The calculation method can be found in the Macao Financial Services Bureau website.In addition, exemption allowance for part-time and employee who are aged 65 or above or with permanent disability level of or above 60%, is adjusted to MOP$198,000.00( since 2019 ).
60% of the Salaries Tax paid for the assessment year 2020 will be refunded to Salaries Taxpayers who hold a Macao Resident Identity Card on 31 December 2020（since 2013 ; In 2018：70%）, up to a ceiling of MOP$14,000.00（since 2013 ; from 2013 to 2015：MOP$12,000.00 ; In 2018：MOP$20,000.00）.
Cash or goods donated in response to Coronavirus will be regarded as an expenditure or loss to the fiscal year if the salaries tax group 2 taxpayer donates to social organizations of public interest and charitable organizations in Macau or in Mainland, as well as national institutions and their departments at or above country-level government in Mainland China.
Tourism Tax
Exemption of tourism tax on the services provided by luxury, class 1 and class 2 restaurants indicated in Law no. 8/2021 – Operation of Hotel Establishments and Decree Law no. 16/96/M, of April 1st. The venues exempted from tourism tax are not required to submit an M/7.( since 2022 )
Exemption of tourism tax on the services provided by luxury, class 1 and class 2 restaurants in group one classification indicated in article 6, and also on proprietary business activities provided by similar business in group one classification of group 1, 2 and 3 hotels indicated in article 5 of the Decree-Law no. 16/96/M. ( From 2002 to 2021 )
Starting from 01 May 2020, waive of tourism tax for six months on hotels of group 1, 2 and 3 indicated in article 5 of the Decree-Law no. 16/96/M, and also on luxury and class 1 ballrooms and bars of similar business in group 2 and 3 classification indicated in article 6, as well as health clubs, saunas, massage parlours and karaokes indicated in article 1(b) of Tourism Tax Regulation, the submission of M/7 is required monthly.
Starting from 11 May to 31 December 2021, the following venues are exempted from tourism tax: hotels of group 1, 2 and 3 indicated in article 5 of the Decree-Law no. 16/96/M, and also luxury and class 1 ballrooms and bars of similar business in group 2 and 3 classification indicated in article 6, as well as health clubs, saunas, massage parlours and karaokes indicated in article 1(b) of Tourism Tax Regulation, the submission of M/7 is required monthly.
Stamp Duty
Exemption of stamp duty on insurance contracts and banking service charges. ( since 2005 )
Exemption from stamp duty on auctions of products, goods and property, or movable or immovable property. ( since 2002 )
Exemption of stamp duty on all admissions of performance, exhibition or any kind of entertainment. ( since 2010 )
The issuance and acquisition of public debts will be exempt from the applicable stamp duty.（ since 2021 ）
The issuance, acquisition and the onerous transfer of PRC bonds, local bonds and central corporate bonds, will be exempt from the applicable stamp duty.（ In 2020 ）
Exemption of stamp duty for issuing and acquiring the local bonds issued by the mainland authorities and state-owned enterprises bonds.（ In 2019 ）
Exemption of stamp duty payment on the issuance and renewal of permits and licenses.（ In 2020 ）
Exemption of stamp duty on putting up or placement of advertisements, signboards and publicity materials that were already exempted from the license fee. ( since 2002 )
Exemption of stamp duty on the first MOP$3,000,000.00 of fixed asset value which is only applicable for Macao permanent residents. ( since 2008 )
Circulation Tax
Exemption or refund of the year 2020 circulation tax paid on vehicles namely taxis, trucks, vans, tractors, coaches, instruction vehicles, school buses, overland cross-border passenger vehicles. and vehicles registered by hotels, travel agencies and non-driver car rental companies. （ In 2020 ）
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Tax items
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Mainland China （general application）
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Guangdong
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Hong Kong SAR
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Macau SAR
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Income Tax
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25%;
global tax, tax on capital gain
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25%
(Eligible enterprises in Qianhai and Hengqin are subject to 15%）
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Profit tax:
16.5% to legal entities; 15% to non legal entities; Tax by source of income; No tax on capital gain.
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Complimentary tax:
Tax free income of MOP600,000 and thereafter at a fixed rate of 12%; Tax by source of income; No tax on capital gain.
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Individual Tax
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Progressive rates 3%-45%
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3%-45%
(Eligible Hong Kong and Macau residents working in the nine cities in Peal River Delta will receive the tax subsidies from the Government)
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Salary Tax：
Progressive rates 2%-17%
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Professional tax：
Tax free income of MOP144,000 and therefore at progressive rates of 7%-12%; Income deduction 25%; Tax payment deduction 30%
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Dividend Tax
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Enterprises are only allowed to distribute dividends after paying income tax. On top of this, shareholders need to pay dividend tax.
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Enterprises are only allowed to distribute dividends after paying profit tax. However, there is no dividend tax to be paid by shareholders.
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Enterprises are allowed to distribute dividends before or after tax.
If enterprises distribute dividends after tax. There is no dividend tax on shareholders.
Alternatively, enterprises can choose to distribute dividends before tax, which means no income tax should be paid by enterprises. In this case, shareholders should pay Macau complimentary tax enjoying income tax exemption and tax rate of 12%, whether they are local or non-local shareholders.
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Turnover Tax
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VAT, Consumption tax
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None
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None except consumption tax on fuel and lubricants, tobacco and alcohol
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Stamp Duty
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Widely levied
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Limited, mainly on real estate and Hong Kong share transfers
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Limited, mainly on assets transfer
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Import & Export Tax
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Widely levied
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Limited
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Limited
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Gaming Tax
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None
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None
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Yes
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