Tax laws Macau
Macau, a Special Administrative Region (SAR) of China, operates a taxation system that emphasizes simplicity and competitiveness, particularly to support its robust tourism and gaming industries.
1. Corporate Income Tax (Complementary Tax):
Taxable Profits Below MOP 600,000: Exempt from tax for the 2024 tax year, as per the 2025 Budget approved by the Legislative Assembly.
Taxable Profits Above MOP 600,000: Taxed at a flat rate of 12%.
Payment Schedule: Tax is payable in two equal installments in September and November. If the amount due is not more than MOP 3,000, payment is requested in a single sum in September.
2. Personal Income Tax (Complementary Tax):
Macau's personal income tax operates on a flat rate of 12%. The annual assessment period runs from January 1 to December 31. Taxpayers are required to file returns by the end of February. Payments are due in two equal installments in September and November, with the same thresholds and payment structure as corporate tax.
3. Gaming Tax:
As a major revenue source, gaming tax is levied on casino operators:
Gross Gaming Revenue Tax: A fixed rate of 35%.
Additional Contributions: Up to 2% for social and economic purposes and up to 3% for tourism promotion, totaling a maximum of 40%.
4. Property Tax:
Leased Properties: Subject to property tax at a rate of 8% on actual rental income for 2024.
Owner-Occupied Properties: Taxation details vary based on occupancy and usage.
5. Recent Tax Reforms:
Macau is undergoing significant tax reforms, with the new Tax Code set to take full effect in 2026. These reforms aim to:
Territorial Tax System: Clarify that Macau's taxation adheres to the territorial principle.
Transfer Pricing Regulations: Introduce rules to align with international tax standards.
Incorporation of International Tax Concepts: Include definitions of permanent establishment, tax agents, and tax residents.
6. Governance and Economic Diversification:
In December 2024, Sam Hou Fai, a former judge backed by Beijing, assumed office as Macau's leader. His administration faces the challenge of diversifying the economy beyond gaming, which remains a significant revenue source despite recent fluctuations.
Note: Tax laws and regulations are subject to change. For the most current information, it is advisable to consult official Macau government sources or seek professional tax advice.
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