Taxation
2004-11-01

 

DESIGNATION

INCIDENCE

EXEMPTIONS

(Fiscal incentives)*

Property Tax

For leased property, tax is levied at 16% on the net rental income.
Tax is levied at 10% for property with an annual rental amount below the assessable rental value and non-leased properties.

Total exemption: property purchased exclusively for industrial purposes.

Partial exemption: An exemption period of five years for industrial premises rented in Macao and ten years for those on the islands (1).

Industrial Tax

Charged on all individuals and companies engaged in any commercial or industrial business. Fixed annual fee varies according to the nature of the business. The usual charge is MOP300 (US$37.5).

Possible total exemption
(2).
50% reduction for businesses located on the islands (except off-shore banking operations)

Complementary (Profits) Tax

Levied on net profit derived from any commercial or industrial business. Sliding scale tax rates averaging 12% on income over MOP300, 000 (US$37,500) and varying between 3% and 12% for income below this level.

Tax exemption of 50% (3).

Professional Tax

Levied on individuals with an annual income in excess of MOP120, 000 (US$15,000) at rates varying between 7% and 12%, applicable to employees receiving daily wages and monthly salary as well as self-employed professionals.

In the case of self-employed professionals, tax is based on the net profits of the previous year, providing appropriate accounting records are kept.

 

Stamp Duty

The transfer of property worth up to MOP2 million is subject to 1% stamp duty, 2% stamp duty on property worth between MOP2 million and 4 million, and 3% stamp duty on property worth over MOP4 million. Free transfer of property or registered assets and rights worth over MOP50, 000 are subject to a standard rate of 5%. A 0.5% stamp duty is levied on the intermediate transfer of property.

 

Consumption Tax

Charged on fuel and lubricants, tobacco, alcohol. The tax on some alcoholic drinks is levied ad valorem according to the CIF/Macao value; the remainder is specified by the government.

It should be noted that fuel supplied to industrial units is tax free. (4)

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 ranges from 10% and 30%).

Vehicles intended for use in Macao's Public Services, tourism sector and public transport, cargo, are exempted from Motor Vehicle tax.

Social Security Contributions

The monthly contribution made by the employer is MOP30.0 (US$3.75) per resident employee and MOP45.0 (US$5.63) per non-resident employee.

 


Exemptions referred to in (1), (2), (3), and (4) are granted, upon application detailing grounds with a statement of facts, for projects which comply with at least one of the following:
Promoting industrial diversification;
Contributing to promotion of exports to new unrestricted markets;
Promoting added value increase within their own production chain;
Contributing to technological modernisation;

Approval must be received from the Government prior to the commencement of construction, expansion, re-
organisation or restructuring of industrial premises.

* Please refer to section under Fiscal Incentives

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