It is time and money consuming if the tax filing arranged not properly.
Our Service includes:
1. Filing Corporation’s Profits Tax Return, Computation of Proposed Tax and Schedules;
2. Acting as client’s tax representatives, preparation of tax appeal
1. Computation of employees’ salaries tax.
2. Preparation and filing of Employer’s Returns on employees’ remuneration and Tax Returns for individuals
Tax planning and advisory service
The tax system of Macao is basically derived from Portugal. Amendments and improvements have been made constantly on the tax regulations so as to let the tax system adapt more closely to the Territory. As the tax system of Macao is territorial in nature, all activities of commercial or industrial nature that are being conducted in the territory are taxable.
The tax system of Macao has an attractive characteristic of the lowest tax rates as compared to other South East Asian countries. In fact, as the Territory is still in its developing stage, low tax rates are essential for attracting foreign, as well as local investments. The main reason why such low tax rate can be maintained is that direct and indirect taxes are not the principal components of total public revenue. High tax rates and as a result, large tax revenues are what is often seen in other countries. But in the case of Macao, the major source of public revenue comes from revenues from franchises granted, which are actually the rent, the profit tax and other revenues collected from the gambling industry. With the gambling industry supporting most of the Territory’s revenues, the tax burden on local and foreign business and economic activities is highly bearable due to the benefits derived from low tax rate. As a result, the economy of Macao has been developing at a remarkable speed.
The principal governing law for each type of tax imposed in Macao is the respective tax regulation enacted by the Governor and the Legislative Assembly.
Taxation is centrally administered by the Finance Department, which holds wide discretionary powers in interpreting tax regulations, carrying out tax audits, and in imposing penalties within the limits set forth in the tax regulations.
Companies, which are incorporated in the Territory, are regarded as resident companies. They are taxed on their revenue derived worldwide. On the contrary, which companies that are not incorporated in the Territory are regarded as non-resident and only revenue derived from the Territory will be subjected to Macao taxation.
Macao does not conclude any tax treaty with foreign country and thus no credit is granted for foreign taxes paid.
Registered accountants or auditors must certify the following tax return:
2. Stamp duty return of banks.
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.
TAccording to the Law no. 21/2021 - the Government Budget of Financial Year 2022, stated the following tax relief measures which are managed by the Financial Services Bureau:
Business Registration Tax
Exemption of business registration tax. ( since 2002 )
Exemption of land rental under MOP$100.00. ( since 2002 )
Standard deduction of MOP$3,500.00 on property tax. ( since 2008; From 2002 to 2007: MOP$500.00 )
Exemption allowance for profits tax assessment is MOP$600,000.00. ( since 2014 )
30% exemption on salaries tax and the exemption allowance for its assessment is MOP$144,000.00. ( since 2011; From 2008 to 2010: MOP$120,00.00 )
Exemption of tourism tax on the services provided by restaurants. ( since 2022; From 2002 to 2021: 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. )
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 2018 )
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 2019 )
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 )
2. Indirect Taxes - Indirect taxes in the Territory include Stamp Duties, Tourism Tax, Consumption Tax, Land Rent and Motor-Vehicle Tax.
Industrial tax is levied on companies or individuals engaged in any commercial or industrial business irrespective of where their residence or headquarters are situated. All entities, which derive income from the territory of the Macao is subject to industrial tax.
Any person intending to operate any business or industrial activity in Macao should first proceed to register his activity as an “industry”. The registered activities will then be subject to industrial tax. Therefore, the industrial tax is, in fact, a kind of business registration charge, charging different amounts on different types of businesses or industries. But it should be noted that the payment of industrial tax itself is not the granting of a license for activating an individual or a collective body’s industry. The taxpayer, after paying the industrial tax respective to his industry, should then proceed to petition for the appropriate administrative or industrial license.
Registration of the activities shall be made with the Finance Department 30 days before the commencement of business.
Tax is payable before the commencement of business and thereafter.
Other than banking and insurance business the annual tax payable ranges from MOP 500 to MOP 1,500 depending on the nature of the business.
Profit tax is imposed on the total income earned in Macao by individuals or corporations irrespective of where their residence or headquarters are situated, excluding rental income from buildings situated in Macao.
The total income of an individual is the total of his business profits and income from work.
The total income of a corporation is its profits derived from commercial and industrial activities.
Under the Complementary Tax Regulation, taxpayers are classified in one of the two groups as follows:
Group A taxpayers
These refer to the following business enterprises:
1. All companies with full set of accounting records which are signed and verified by certified public accountants or accountants;
2. Public companies, partnerships limited by shares, business entities whose capital is not less than MOP 1,000,000 or the average taxable profit in the last three consecutive years exceeds MOP 1,000,000;
3. Any companies being the ultimate parent entity;
4. Those who choose to be a Group A taxpayer.
Group A taxpayers shall be taxed on the basis of profits computed under duly organized accounting records and shall submit tax returns certified by certified public accountants or accountants.
Group B taxpayers
These refer to business enterprises, which do not fall into Group A.
Group B taxpayers shall be taxed on the basis of presumed profits determined by the Finance Department.
With effect from 2014,the complementary tax rates are as follows:
Annual taxable income(MOP)
Up to 600,000
Filing and Payment
Annual tax returns must be filed with the Finance Department by the following dates:
Group A taxpayers – 1 April to 30 June
Group B taxpayers – 1 February to 31 March
Payment of tax
Payment of tax shall be made by two equal installments normally in September and November. However, if the amount is not greater than MOP 3,000, payment shall be made by one installment, normally in September.
|Annual taxable income (MOP)||Tax rate (%)|
|Amount exceed 144,000|
|Next 20,001 to 40,000||8%|
|Next 40,001 to 80,000||9%|
|Next 80,001 to 160,000||10%|
|Next 160,001 to 280,000||11%|
2. New residential or commercial buildings or buildings which have undergone improvements or extensions with investment in excess of 50% of the value of the property are exempted for a period of four years in Macao City or six years in the Islands.
3. New industrial buildings are exempt for a period of five years in Macao City or ten years in the Islands.
4. Buildings being occupied by non-profit making schools approved charitable organizations and religious bodies.
|Up to MOP 1 million||0.4%|
|Next MOP 4 million||0.3%|
|Next MOP 5 million||0.2%|
|Sale of fixed assets up to MOP 2 million||1.0%|
|Sale of fixed assets MOP 2 million to MOP 4 million||2.0%|
|Sale of fixed assets up to MOP 4 million||3.0%|
|Free transfer of assets over MOP 50,000||5.0%|
|Transfer of shares||1.0-3.0%|
|Supply of goods||0.2-0.5%|
|Insurance premium plus surcharges||2.0-5.0%|
|Interest and commission received by banks||1.0%|
|Insurance premium plus surcharges||2.0-5.0%|
|Interest and commission received by banks||1.0%|
Charged on fuel and lubricants, tobacco, alcohol. The tax on some alcoholic drinks is levied at valorem according to the CIF/Macao value; on the remainder it is specific.
Tourism tax is imposed at the rate of 5% on the bill of the services rendered in Macao by establishments such as hotels, guesthouses, restaurants, dancing halls, nightclubs, massage and sauna parlours.
This tax is levied on the actual sale price of new vehicles covering automobiles, motorcycles and scooters and on imported vehicles for the private use of the importer or marketing agents, varying between 30% and 55% (motorcycles and scooters, 10% and 30%).
Ownership of land situated in Macao is not subject to any tax. However, if the land is leased from the Macao Government it will be subject to an annual land rent. The amount of the land rent payable depends on the location and characteristics of the land.