Tax

Macao has adopted a simple taxation structure with low tax rates. The annual assessment period is from 1^st January to 31^st December. Taxes levied in Macao include gaming tax, business tax, corporate income tax, personal income tax, real estate tax, tourism tax, motor vehicle tax and asset transfer stamp duty.

Gaming Tax

The operators of all types of gaming activities, including casino gaming, horseracing, and lottery bets, are liable to pay a certain percentage of their gross revenues in tax, or pay tax according to other levy scales. Gaming tax is calculated by gross casino gaming revenue taxed at the rate of 35 per cent. Gaming tax is the Government’s major source of revenue.

Business Tax

The Regulations on Business Tax require that business tax be levied on all natural persons and legal persons operating any activity with the nature of industrial or commercial business. The amount of tax depends upon the fixed amounts stipulated in the Table of General Activities contained in the Regulations on Business Tax. Although business tax is typically 300 patacas a year, for commercial banks the tax is 80,000 patacas plus a sales tax of five per cent.

[Note] Pursuant to Article 11 under the Budget of the Financial Year of 2023, approved by Law No. 19/2022, in 2023, no industrial tax set out in Table 1 and 2 under the Regulations for Industrial Tax shall be collected.

Profits Tax

Regulations on Profits Tax require that profit tax be levied on the total income of natural persons or legal persons from local industrial or commercial activities. Rates of profit tax are as follows:

Taxable annual revenue	Percentage
Revenue of up to MOP 32,000	Waived
Progressively in excess of designated amount
MOP 32,001 to MOP 65,000	3%
MOP 65,001 to MOP 100,000	5%
MOP 100,001 to MOP 200,000	7%
MOP 200,001 to MOP 300,000	9%
Over MOP 300,000	12%

[Note] Pursuant to Article 24 of the Budget of the Financial Year of 2023 approved by Law No. 19/2022, the tax allowance for profit tax in 2023 is set at MOP 600,000, and for revenue over MOP 600,000, tax rate shall be set at 12%.

Salaries Tax

Regulations on Salaries Tax require that personal income tax be levied on working income. Personal income taxpayers are classified into two groups. One group is those working for others in any occupation, including daily wage earners and employees. The second group is self-employed freelance and specialised professionals. Salaries tax rates are as follows:

Taxable annual income	Percentage
Revenue of up to MOP 95,000	Waived
Progressively in excess of designated amount
Up to MOP 20,000	7%
MOP 20,001 to MOP 40,000	8%
MOP 40,001 to MOP 80,000	9%
MOP 80,001 to MOP 160,000	10%
MOP 160,001 to MOP 280,000	11%
Over MOP 280,000	12%

[Note] Pursuant to Article 20 of the Budget of the Financial Year of 2023 approved by Law No. 19/2022, all payers of Salaries Tax can enjoy a deduction of 30% of the Salaries Tax payable and the exemption allowance for its assessment in 2023 is MOP144,000.00. In addition, exemption allowance for part-time and employee who are aged 65 or above or with permanent disability level of or above 60%, is adjusted to MOP198,000.00.

According to Article 21 of Law no. 19/2022 on the amendments to the Budget Proposal for the Fiscal Year 2023, 60% of the Salaries Tax paid for the assessment year 2021 will be refunded to Salaries Taxpayers who hold a Macao Resident Identity Card on 31 December 2021, up to a ceiling of MOP14,000.00

Tourism Tax

Regulations on Tourism Tax require that a five per cent tourism tax be levied on the prices of services offered by hotels and similar establishments, gyms and saunas, massage parlours and karaoke bars.

[Note] Pursuant to Article 17 of the Budget of the Financial Year of 2022, approved by Law No. 21/2021, in 2022, tourism tax shall be exempted for the settlement of services provided by:
(1) The Law No. 8/2021 regulates "Restaurants in Hotel Properties";
(2) Luxury, class-1 and class-2 restaurants which are regulated under Law No. 16/96/M;
(3) Two-star hotels and economic accommodation.

Property Tax

Regulations on Urban Property Tax require that property tax be levied on the revenue of local housing properties, and that the tax rate shall be six per cent of the taxable revenue for non-leased properties, while that for leased properties shall be ten per cent.

[Note] Pursuant to Article 22 and Article 23 of the Budget of the Financial Year of 2023, approved by Law No. 19/2022, in 2023, Macao residents can enjoy a standard deduction of MOP3,500.00 on property tax. In addition the tax rate for leased properties on Urban Property Tax shall be lowered to 8%.

Stamp Duty (Conveyance of Property)

Transfer of an immovable asset before death, whether such transfer be temporary or permanent, or paid or unpaid, the natural person or the acquired body is subject to asset transfer stamp duty at the following rates:

• Tax rate for conveyance on sale of property:
  Taxable Amount x Progressive Tax Rate + 5% Stamp Duty on Payment Slip

Taxable area	Tax rate
Paid transfer of an immovable asset with a value of up to MOP 2,000,000	1%
MOP 2,000,001 to MOP 4,000,000	2%
Over MOP 4,000,000	3%

• Tax rate for conveyance non sale of property:
  Taxable Amount x Fixed Tax Rate 5% + 5% Stamp Duty on Payment Slip

Buyer Stamp Duty

A company, an entrepreneur, or a non-Macau resident acquiring a residential property in Macau SAR is subject to BSD at a flat rate of 10%.

• Tax rate: Taxable amount x 10% + 5% Stamp duty

Special Stamp Duty

Temporary or permanent transfer of an immovable asset for residential, commercial, office or motor vehicle parking purposes within two years from the date of settlement of the Stamp Duty for conveyance of property will be subject to Special Stamp Duty. The tax rates are as follows:

Taxable area	Tax rate
Transfer within one year from the date of settlement of Stamp Duty	20%
Transfer within two years from the date of settlement of Stamp Duty	10%

Additional Stamp Duty

For the acquisition of non-first property for residential purpose, the Additional Stamp Duty is required. The tax rates are as follows:

Taxable area	Tax rate
Acquiring a second property for residential use	5%
Acquiring a third property and above for residential use	10%

Excise Duty

Pursuant to Article 2 of Law No. 4/99/M of the Excise Duty Regulations on 13^th December 1999, alcoholic drinks (Group II) and tobacco (Group III) are considered as excise duty taxable since the time they are produced or they enter Macao. Alcoholic drinks are levied as an ad valorem tax subject to CIF (cost, insurance and freight) as well as fixed tax, while tobacco products are levied excise duty of fixed amounts.

Motor Vehicle Tax

Natural persons or legal persons importing new motor vehicles for their own use, or buying new motor vehicles for resale or for their own use are subject to motor vehicle tax based upon the taxable value of motor vehicles.