Macau tax system - taxation of Macau companies and individuals: VAT, income tax and capital gains. Tax treaties of Macau.
Basic taxes (briefly)
|Corporate tax (in detail)||Income tax is paid at a tax rate of 12%. Profits less than 600,000 MPA are not taxed|
|Capital gains tax. Details|
|Other taxes||Social contributions, Property tax|
International tax agreement
|Belgium, Cape Verde, China, Mozambique, Portugal|
|Argentina, Australia, Denmark, Faroe Islands, Finland, Greenland, Guernsey, Iceland, India, Ireland, Japan, Jamaica, Malta, Norway, Sweden, United Kingdom|
Taxation of individuals
For tax purposes, as a matter of principle, status as a tax resident or non-resident is not important, unless double taxation treaties (DTTs) apply.
Income from employment in Macao or under an employment contract with a Macao-based employer is taxable (professional tax) regardless of the place of remuneration, the place of business, the number of days spent in Macao and whether or not one is a tax resident. This also applies to the taxation of self-employed persons' income.
Such income is taxed on a progressive scale of taxation:
- income up to 144,000 MOP - 0%;
- income from 144,000 to 164,000 MOP - 7%;
- income from 164,000 to 184,000 MOP - 8%;
- income from 184,000 to 224,000 MOP - 9%;
- income from 224,000 to 304,000 MOP - 10%;
- income from 304,000 to 424,000 MOP - 11%;
- income over 424,000 MOP - 12%.
Freelancers and entertainers who work in Macao without a work visa are taxed at the rate of 5% on remuneration or the amount calculated according to a progressive tax scale if it is higher.
Profits from the disposal of assets and investment income, in general, are not taxable.
Companies incorporated in Macao pay income tax (income tax) on their worldwide income. An exception is rental income from real estate in Macao which is subject to special property tax. If a foreign company receives income from business activities in Macau, it must pay income tax in Macau.
Income tax is payable at a rate of 12%. Profits of less than MOR 600,000 are not taxable.
Profits from the disposal of assets are included in the total taxable base.
Dividends are subject to income tax with the exception of dividends that are distributed from profits that have been subject to income tax in Macao. If dividends are paid out of profits which were not subject to Macao income tax, income tax will be payable on distribution of dividends to the shareholders
There are no CFC rules in Macau.
Withholding tax on income
There is no withholding tax in Macau imposed by local companies on payments of income to foreign companies.
There is no VAT in Macau.
A monthly social security contribution of MYR90 is payable on the remuneration of resident employees. Of this, MYR 60 is at the employer's expense and MYR 30 at the employee's expense.
Owners of buildings in Macao pay property tax annually.
In respect of buildings which are rented out, tax is payable on rental income (subject to certain deductions) at the rate of 8%.
In respect of buildings used for own use, tax is payable at a rate of 6% on the value as determined by the regulatory authorities.
Stamp duty is payable on certain documents as a fixed amount or as a percentage of the value of the document at rates from 0.2% to 10%. Stamp duty on leases is payable at a rate of 0.5%. Stamp duty on transfer transactions varies from 1% to 3% and an additional charge is levied at 5% of the stamp duty amount. Free transfers of certain assets are subject to a 5% supply charge.
Additional stamp duty at increased rates is payable on the purchase of additional dwellings, if the property is owned.
If the property is sold within one year of purchase, special stamp duty is payable at a rate of 20% and within two years at a rate of 10%.
If the property is purchased by a company, entrepreneur or an individual who is not resident in Macao, the purchaser pays stamp duty at a rate of 10% in addition to the above fees.
International tax treaties
China has concluded 103 Double Tax Treaties (DTC) and 10 Tax Information Exchange Agreements (TIEA) with the following jurisdictions:
103 DTCs: Albania, Algeria, Armenia, Australia, Austria, Azerbaijan, Bahrain, Bangladesh, Barbados, Belarus, Belgium, Bosnia and Herzegovina, Botswana, Brazil, Brunei, Bulgaria, Georgia, Germany, Great Britain, Greece, Hong Kong, Hungary, Italy, Kazakhstan, Cambodia, Canada, Cuba, Cyprus, Denmark, Egypt, Israel, Iceland, India, Indonesia, Iran, Ireland, Italy, Kazakhstan, Cambodia, Canada, Qatar, Cyprus, Czech Republic, Switzerland, United Kingdom, Venezuela, Viet Nam, Cambodia, Canada, Cuba, Cyprus, Denmark, Egypt, Iceland, India, Indonesia, Iran, Ireland, Israel, Italy, Kazakhstan, Kuwait, Kyrgyzstan, Laos, Latvia, Liechtenstein, Lithuania, Luxembourg, Macao, Mauritius, Macedonia, Malaysia, Qatar, Spain, Zambia, Zimbabwe Malta, Mexico, Moldova, Mongolia, Morocco, Nepal, Netherlands, New Zealand, Nigeria, Norway, Oman, Pakistan, Poland, Portugal, Republic of Korea, Romania, Russian Federation, Saudi Arabia, Seychelles, Serbia, Singapore, Slovakia, Syria, UAE, Slovenia, Sudan, USA, Tajikistan, Thailand, Trinidad and Tobago, Tunisia, Turkey, Turkmenistan, Uganda, Uzbekistan, Ukraine, Philippines, Croatia, Czech Republic, Ecuador, Estonia, Ethiopia, Jamaica, Japan, South Africa, Sri Lanka, Sweden, Switzerland, and Uzbekistan.
10 TIEAs: Argentina, Bahamas, Bermuda, British Virgin Islands, Cayman Islands, Guernsey, Jersey, Liechtenstein, Isle of Man, San Marino.
China has also signed and ratified the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI). The MLI entered into force for China on September 1, 2022.
Macao does not generally have currency controls.
Taxes of Macau
|Min. rate for corporate tax||12%|
|Capital gains tax||Regular rate|