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s稅務
Taxation Services
Taxation Services
In Macau, taxation is of territorial basis. In other words, the tax is primarily levied on Macau sourced as they are derived from or arisen in Macau within that basis period.There are three categories of taxes levied for a year of assessment that ends on 31 December. They are Profits Tax, Salaries Tax and Property Tax respectively.

It is time and money consuming if the tax filing arranged not properly.
Our professionals try to help taxpayers to lessen their tax burden that allowed by laws. We will provide the suitable tax planning and professional advices according to clients’ unique situation and demand. Setting the strategy, supervising the operation, reviewing periodically, all are necessary steps that should be adopted in order to enjoy the best tax concession.
 
Our Service includes:
   Profit Tax 
    1.  Filing Corporation’s Profits Tax Return, Computation of Proposed Tax and Schedules;
    2.  Acting as client’s tax representatives, preparation of tax appeal
   Salaries Tax 
    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
　
Fundation
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.
 
Levy Management
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.
An appeal to a decision made by the Finance Department has to be submitted first to the Board of Review and thereafter to the Macao Court.
 
Tax year
The tax year is the calendar year (From 1 January to 31 December).
 
Taxation of trusts
Trust law is not recognized in Macao.
 
General Characteristics
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.
 
For individuals, the distinction between resident or non-resident is not crucial, since only personal revenue derived from work rendered in the Territory will be subjected to Professional Tax. An individual can be subjected to both Professional Tax and Profit Tax. Married couples will be assessed separately for Professional Tax purposes, but jointly for Profit Tax.
 
Double Taxation Treaty
Macao does not conclude any tax treaty with foreign country and thus no credit is granted for foreign taxes paid.
But in practice, any foreign tax paid can be treated as expenses and can therefore be deducted from the taxable revenue.
Macao has entered into a tax treaty with Portugal in 1999. Under this treaty, the territory of source has the prior right of tax, and the territory of residence provides tax relief in the form of either an exemption or tax credit with effect from 1 January, 2000.
 
In June 2006, Macau and Portugal signed the “The People’s Republic of China and the Macao Special Administrative Region of the Republic of Portugal to set their office and staff of the applicable tax privileges Agreement.” Under this agreement, the two sides set up representative offices in the agreement of the other party, including China and Macau Economic and Trade Office in Portugal, the Consulate General of Portugal in Macau, the Macao Special Administrative Region of the Portuguese Foreign Trade Council and the Instituto Português do Oriente, where the office premises, staff panel members and their families members will receive tax exemption.
 
Meanwhile, a double tax treaty was signed in December 2003 between Macau and Mainland China which is effective from January 1st, 2004.
In July 2007, Macau and Mainland China have signed a protocol which acts as an amendment for the double tax treaty signed in December 2003.
 
Other Restrictions
Registered accountants or auditors must certify the following tax return: 
1.    Profit tax returns of Group A taxpayers;
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 )


Land Rental
Exemption of land rental under MOP$100.00.  ( since 2002 )


Property Tax
Standard deduction of MOP$3,500.00 on property tax.  ( since 2008; From 2002 to 2007: MOP$500.00 )


Profits Tax
Exemption allowance for profits tax assessment is MOP$600,000.00. ( since 2014 )


Salaries Tax
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 )


Tourism Tax
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. )

 

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 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 )


 

1. Direct Taxes -  The direct taxes in the Territory include Industrial Tax, Complementary Tax, Professional Tax and Property Tax.
The revenue from franchises granted is also considered to be a kind of direct tax revenue.
 
2. Indirect Taxes - Indirect taxes in the Territory include Stamp Duties, Tourism Tax, Consumption Tax, Land Rent and Motor-Vehicle Tax.
Of all, the consumption tax revenue comprises the largest portion of the indirect tax revenue.
 
 
Industrial 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.

 
 
Complementary Tax

Total Income
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.

 

Taxpayers

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.

 

Tax rates

With effect from 2014,the complementary tax rates are as follows:

Annual taxable income(MOP)

Rate(%)

Up to 600,000

Nil

Over 600,000

12

Filing and Payment

Filing

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.

 
 
Professional Tax
Professional tax is levied on all personal income arising in or derived from Macao, including salaries, wages, bonuses, fees, commissions, leave pay, value of free accommodation and other prerequisites.
 
Taxpayers
Taxpayers are divided in two groups: employees (those employed to render services to third parties in return for compensation on daily or monthly basis) and professional practitioners (those who are self-employed and render professional services).
In the case of employees, professional tax is deductible at source and the tax deducted by the employer must be paid to the tax department on a quarterly basis within the prescribed period.
For professional practitioners, the tax is based on the net profit of the previous year.
Prepared in accordance with appropriate accounting, and approved in accordance with existing legal provisions in the Financial Bureau registered accountant or auditor’s signature and verification.
Agreed losses for taxation purposes may be carried forward and deducted from assessable profits in the following three years.
 
Tax rates
The professional tax rates are progressive up to a maximum rate of 12%. No any surtax.
The professional tax is calculated on the assessable income after 25% deduction.The rates are as follows are applicable:
　 Annual taxable income (MOP) Tax rate (%)
　Up to144,000 Nil
　Amount exceed 144,000  
　Next 20,000 7%
　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%
　Over 280,000 12%
 
Starting from 2013,a 30% reduction in professional tax amount has been granted.It subjects to the annual tax incentive announced by the Government.
 
Filing and Payment
Employers are required to provide a copy of relevant identified document and file Form M2 with the Finance Department within 15 days after commencement of employment. Employers are required to file any changes with the personal details of employees with the Finance Department within 15 days the changes become effective.
 
Employers are required to deduct professional taxes from their employees’ salary incomes on a “pay-as-you-earn” basis, and remit these deductions to the tax authorities on a quarterly or monthly basis. Non-residents are required to pay tax on a monthly basis.
 
Professional practitioners who work together with not less than four other professional practitioners or have an average turnover over the last three years of more than MOP1million are obliged to submit annually, before 15 April, Professional Tax returns in respect of the preceding year. The tax returns should be certified by accountants or auditors who are registered with the Macao Registered Auditors and Accountants Committee.
 
Other professional practitioners are obliged to submit annually, between January and February, professional tax returns in respect of the preceding year. Certification of the tax returns by registered accountants or auditors is not required in these cases.
 
Non-Residents
Professional tax is payable by all non-resident specialists, technicians and professionals working in Macao. The amount payable is the same as Macao residents, with a minimum of 5% even if the respective remuneration does not exceed the exempt amount. The tax deducted by the employer must be paid to the finance department on a monthly basis within the prescribed period.
 
 
Property Tax
The property tax is charged on the revenue derived from all urban houses in Macao, no matter they are being leased or for self-use. For leased houses, their revenues are referred to their amounts of rent use. For non-leased houses, their revenues are referred to the economic benefits that the users of the houses can obtain from them. A fixed tax rated of 16% is applied to the revenues of all urban houses. Tax is charged at 10% on the official ratable value if not rented out.
 
A deduction of up to 10% of the rental income shall be allowed upon request made to the Finance Department to cover the cost of repairs and maintenance incurred by the taxpayer.
 
Property tax shall be payable by one installment during the months of June, July and August.
 
Exemptions from property tax include the following situations:
　1. The owners use buildings for industrial purposes.
　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.
 
 
 
Stamp Duty
Stamp duty is levied on a variety of documents and transactions executed in Macao.
 
There is new change in property transfer tax. The tax on fixed property transfer will be 1% for first MOP2,000,000, 2% for the next MOP2,000,000 and 3% for the excess amount, while free transfer of property (real estate) or free transfer of assets over MOP50,000 is subject to 5%. Additionally, stamp duty of 0.5% is levied on the intermediate transfer of real estate.
 
Transfer of shares of a Macao incorporated commercial or industrial company is subject to 1% stamp duty on the nominal value of shares.
 
If the transfer of the shares results in a shareholder holding 80% or more than 80% of the total shareholding of the company, such shareholder shall be subject to 3% stamp duty on the assessable value of the fixed assets of the associated company in proportion to the shareholding % of such shareholder. Couple would be consider as one shareholder.
 
The tax rates on the value of certain important documents or transactions are as follows:
 
1. Registered capital
Up to MOP 1 million 0.4%
Next MOP 4 million 0.3%
Next MOP 5 million 0.2%
Thereafter 0.1%
 
2. Public deeds or contracts
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%
  
3. Insurance premium plus surcharges
Insurance premium plus surcharges 2.0-5.0%
 
4. Interest and commission received by banks
Interest and commission received by banks 1.0%
 
 
 
Other Indirect Taxes
Consumer Tax
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
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. 
 
Motor Vehicle Tax
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%).
 
Land Rent
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.