Taxation in Macao SAR: A Comprehensive Overview
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Masato Gerald Jeoffrey Muraishi
Senior Officer
Department of Public Auditing,
Tax Investigation and Appeals
DSF Macao, China
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CONTENTS
01 /
Introduction to Financial Services Bureau
02 /
Profits Tax Framework
03 /
Tax Incentives Policies
05 /
Taxpayer Services
04 /
Tax
Declaration Process
Introduction to Financial
Introduction to Financial
Services Bureau (DSF)
Services Bureau (DSF)
Part 01
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International tax cooperation
DSF’s Role in Taxation
01
02
03
Ensuring tax compliance
Monitoring of tax and public finance
Implementation of tax policies
04
•
Industrial Tax (business registration tax)
•
Property Tax
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Stamp Duty
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Motor Vehicle Tax
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Tourism Tax
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Salaries Tax
•
Profits Tax
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Part 02
Registration:
Registration:
•
DSF - Industrial Tax registration for individuals or legal entities
•
Macao SAR Company Registry – incorporated company
Tax year:
Tax year:
•
Tax year runs from 1 January to 31 December (Calendar year) .
Tax Rate (Profits Tax):
Tax Rate (Profits Tax):
•
Progressive tax rates up to 12%.
Tax Threshold (Profits Tax):
Tax Threshold (Profits Tax):
•
MOP600,000 (RMB512,000 or USD76,000)
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Part 03
Annual Tax Incentives:
Annual Tax Incentives:
According to Law no. 21/2021 “Government Budget of Financial Year 2022”, a
number of preferential tax incentives, in regard to Profits Tax, have been put in place
and they include the following:
•
Tax threshold for
Profits tax
has been increased to MOP600,000.
•
Income generated from 9 Lusophone countries shall be exempted from Profits Tax.
•
Additional deductions on R&D expenses incurred.
•
Interests as well as income obtained from the purchase and sale, redemption of
debt securities issued in Macao SAR shall be exempted from Profits tax.
Statutory Tax Incentives:
Statutory Tax Incentives:
•
Law No. 1/2021 -
Tax exemption on income derived from the scientific and technological innovation
business for 3 years.
•
Law No. 7/2019 - Income generated from the finance leasing related business is subjected to a
concessionary tax rate of 5%.
•
Law No. 21/78/M
- Interest gains derived from, and gains from trading, redemption, or other incomes
on disposal of, the national bonds, local government bonds and state enterprise bonds, of the
People’s Republic of China issued in Macao SAR, shall be exempted from profits tax.
•
Law No. 8/2018 - Tax Incentives for Employing People with Disabilities.
•
Law No. 1/86/M - Tax Incentives within the Scope of Industrial Policy.
•
Law No. 21/78/M
- Losses may be carried forward and be offset by subsequent future taxable
incomes for a maximum of 3 years .
Tax Treaties and Double Taxation Relief:
Tax Treaties and Double Taxation Relief:
The double tax arrangements / agreements are effective with the
following jurisdictions:
•
China’s Mainland
•
Portugal
•
Mozambique
•
Cabo Verde
•
Vietnam
•
Hong Kong, China
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Part 04
Pre-commencement of
Business Operation
01
Legal entities:
Legal entities:
1) Industrial Tax – Form M/1 – New Registration/Amendment Form;
2) A copy of the notarized business registration which has been
published in the Official Gazette of Macao SAR Government;
3) A copy of the identity document of all shareholders or legal
representatives, or any persons acting under the power of attorney.
The following documents are required
to be submitted 30 days before the
expected date of business
commencement:
Individuals:
Individuals:
1)
Industrial Tax – Form M/1 – New Registration/Amendment
Form;
2) A copy of identity document.
02
Normal Course of
Business Operation
Group A Profits tax returns (April to June)
Group B
Profits tax returns
(February to
March)
01
02
03
Salaries Tax – Form M3/M4 – Name List of
Employees (January to February)
Profits tax taxpayers are required to file
the following tax returns and documents
annually:
Termination of
Business Operation
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Industrial Tax – Form M/1 – New
Registration/Amendment Form with 15 days from the
date of cessation of activities;
Profits Tax – Form M/1 – Profits tax return - within 30
days from the date of cessation of activities;
Salaries Tax – Form M3/M4 – Name List of Employees
within 15 days from the date of cessation of activities.
Any
profits tax taxpayer who ceases
operation temporarily or permanently
during the year should submit the
following documents:
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Part 05
Macau Tax App
Macau Tax App
“Macau Tax”is created by DSF and provides the
following services:
Change of Contact Information;
Application for Certificates or Declaration;
Checking Tax Return;
Checking Debt Status;
Checking Registered Bank Account Information;
Salaries Tax Enquiry (employment and earnings
records, earnings assessment notice, mailing address,
refund of overpaid salaries tax, tax refund scheme);
Tax Declaration (Salaries Tax Form M3/M4, Profits Tax
Group B M/1 Return).
Download Link:
https://eserv6.dsf.gov.mo/apk/MACAU_TAX.apk
Macau Tax App
Macau Tax App
Tax Payment;
Tax Relief;
Information on Tax Procedures;
Tax Simulation Calculation;
Checking Salaries Tax;
Checking Motor Vehicle Tax Taxable Value;
Checking the Validity of Business Registration.
Download Link:
https://eserv6.dsf.gov.mo/apk/MACAU_TAX.apk
DSF Wechat Public Account
DSF Wechat Public Account
A multi-functional platform for taxpayers
or users which provides the latest
information on taxation and public finance.
For more information, please visit
www.dsf.gov.mo
Thank you
Thank you
Delve into the intricacies of taxation in Macao SAR with a virtual seminar featuring prominent speakers. Explore topics such as tax administration, profits tax framework, and tax declaration processes. Gain insights into the role of the Financial Services Bureau in ensuring tax compliance and the various taxes under its administration. Discover the registration process for industrial tax and the tax rates applicable to different entities. Uncover the key elements of tax policy implementation and international tax cooperation. Join this enlightening session to enhance your understanding of taxation in Macao SAR.
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Presentation Transcript
Better Connection for a Better Future BRITACOM Tax Administration Theme Day Virtual Seminar 18:30-20:30 Beijing Time 23 June 2022
Masato Gerald Jeoffrey Muraishi Senior Officer Department of Public Auditing, Tax Investigation and Appeals DSF Macao, China
An Introduction to Taxation in Macao SAR Mr. Masato Muraishi Macao, China
01 / Introduction to Financial Services Bureau 02 / Profits Tax Framework 03 / Tax Incentives Policies CONTENTS 04 / Tax Declaration Process 05 / Taxpayer Services
Part 01 Introduction to Financial Services Bureau (DSF)
Financial Services Bureau (DSF) 1 3 Public Asset Management 2 Tax administration Public Finance
01 Ensuring tax compliance 02 Monitoring of tax and public finance DSF s Role in Taxation 03 Implementation of tax policies 04 International tax cooperation
Taxes under the administration of DSF Industrial Tax (business registration tax) Property Tax Stamp Duty Motor Vehicle Tax Tourism Tax Salaries Tax Profits Tax
Part 02 Profits Tax Framework
Registration: DSF - Industrial Tax registration for individuals or legal entities Macao SAR Company Registry incorporated company Tax year: Tax year runs from 1 January to 31 December (Calendar year) . Tax Rate (Profits Tax): Progressive tax rates up to 12%. Tax Threshold (Profits Tax): MOP600,000 (RMB512,000 or USD76,000)
Group A Group B Separate legal entities whose liabilities are limited by shares; or Companies with a share capital of MOP 1,000,000 (RMB842,000 or USD 125,000); or Companies with an average taxable profit for the past three years of over MOP 1,000,000 (RMB842,000 or USD 125,000). or Ultimate parent entity. OR Voluntarily apply for Group A status Not meeting Group A criteria
Group A Group B Complete and proper accounting records; Minimum requirement of sales and purchase books Tax returns verified and co- signed by a certified public accountant.
Part 03 Tax Incentives Policies
Annual Tax Incentives: According to Law no. 21/2021 Government Budget of Financial Year 2022 , a number of preferential tax incentives, in regard to Profits Tax, have been put in place and they include the following: Tax threshold for Profits tax has been increased to MOP600,000. Income generated from 9 Lusophone countries shall be exempted from Profits Tax. Additional deductions on R&D expenses incurred. Interests as well as income obtained from the purchase and sale, redemption of debt securities issued in Macao SAR shall be exempted from Profits tax.
Statutory Tax Incentives: Law No. 1/2021 - Tax exemption on income derived from the scientific and technological innovation business for 3 years. Law No. 7/2019 - Income generated from the finance leasing related business is subjected to a concessionary tax rate of 5%. Law No. 21/78/M - Interest gains derived from, and gains from trading, redemption, or other incomes on disposal of, the national bonds, local government bonds and state enterprise bonds, of the People s Republic of China issued in Macao SAR, shall be exempted from profits tax. Law No. 8/2018 - Tax Incentives for Employing People with Disabilities. Law No. 1/86/M - Tax Incentives within the Scope of Industrial Policy. Law No. 21/78/M - Losses may be carried forward and be offset by subsequent future taxable incomes for a maximum of 3 years .
Tax Treaties and Double Taxation Relief: The double tax arrangements / agreements are effective with the following jurisdictions: China s Mainland Portugal Mozambique Cabo Verde Vietnam Hong Kong, China
Part 04 Tax Declaration Process
Individuals: 1) Industrial Tax Form M/1 New Registration/Amendment Form; 2) A copy of identity document. 01 Pre-commencement of Business Operation Legal entities: 1) Industrial Tax Form M/1 New Registration/Amendment Form; 2) A copy of the notarized business registration which has been published in the Official Gazette of Macao SAR Government; 3) A copy of the identity document of all shareholders or legal representatives, or any persons acting under the power of attorney. The following documents are required to be submitted 30 days before the expected date of business commencement: 02
01 Group A Profits tax returns (April to June) Group B Profits tax returns (February to March) 02 Normal Course of Business Operation Profits tax taxpayers are required to file the following tax returns and documents annually: Salaries Tax Form M3/M4 Name List of Employees (January to February) 03
Industrial Tax Form M/1 New Registration/Amendment Form with 15 days from the date of cessation of activities; 01 Profits Tax Form M/1 Profits tax return - within 30 days from the date of cessation of activities; 02 Termination of Business Operation Any profits tax taxpayer who ceases operation temporarily or permanently during the year should submit the following documents: Salaries Tax Form M3/M4 Name List of Employees within 15 days from the date of cessation of activities. 03
Part 05 Taxpayer Services
Macau Tax App Macau Tax is created by DSF and provides the following services: Change of Contact Information; Application for Certificates or Declaration; Checking Tax Return; Checking Debt Status; Checking Registered Bank Account Information; Salaries Tax Enquiry (employment and earnings records, earnings assessment notice, mailing address, refund of overpaid salaries tax, tax refund scheme); Tax Declaration (Salaries Tax Form M3/M4, Profits Tax Group B M/1 Return). Download Link: https://eserv6.dsf.gov.mo/apk/MACAU_TAX.apk
Macau Tax App Tax Payment; Tax Relief; Information on Tax Procedures; Tax Simulation Calculation; Checking Salaries Tax; Checking Motor Vehicle Tax Taxable Value; Checking the Validity of Business Registration. Download Link: https://eserv6.dsf.gov.mo/apk/MACAU_TAX.apk
DSF Wechat Public Account A multi-functional platform for taxpayers or users which information on taxation and public finance. provides the latest
Thank you For more information, please visit www.dsf.gov.mo
