Tax

Tax

Macao has adopted a simple taxation structure with low tax rates. The annual assessment period is from 1st January to 31st 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, dog racing 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 2017, approved by Law No. 11/2016, in 2017, 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 20 of the Budget of the Financial Year of 2017 approved by Law No. 11/2016, the tax allowance for profit tax in 2017 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 17 of the Budget of the Financial Year of 2017 approved by Law No. 11/2016, 30% wavier on salaries tax and the exemption allowance for its assessment in 2017 is MOP$144,000.00.

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 15 of the Budget of the Financial Year of 2017, approved by Law No. 11/2016, in 2017, tourism tax shall be exempted for the settlement of services provided by luxury, class-1 and class-2 restaurants, and those venues that are established in hotels yet operating independently, particularly those under a different trade name.

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 19 of the Budget of the Financial Year of 2017, approved by Law No. 11/2016, in 2017, a tax reduction of up to MOP 3,500 per property is available for urban properties for tax subjects who are natural persons with right of residence in the Macao Special Administrative Region.

Stamp Duty (Conveyance of Property)

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

Taxable area Tax rate
Paid transfer of an immovable asset with a value of up to MOP 2,000,000.00 1%
MOP 2,000,000.00 to MOP 4,000,000.00 2%
Over MOP 4,000,000.00 3%
Unpaid transfer of an asset 5%

 [Note] Pursuant to Article 13 of the Budget of the Financial Year of 2017 approved by Law No. 11/2016, stamp duty shall be exempted for eligible taxpayers who purchase residential properties that are worth up to MOP 3,000,000.00 in 2017.

Excise Duty

Pursuant to Article 2 of Law No. 4/99/M of the Excise Duty Regulations on 13th 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.

Heavy and light motorcycles
Level of taxable value Corresponding rate of each level Effective average tax rate
Up to MOP 15,000 24%
MOP 15,000 to MOP 25,000 35% 32%
MOP 25,000 to MOP 40,000 40% 42%
MOP 40,000 to MOP 70,000 45% 50%
Over MOP 70,000 50%

 

Cars
Level of taxable value Corresponding rate of each level Effective average tax rate
Up to MOP 100,000 40%
MOP 100,000 to MOP 200,000 50% 46%
 MOP 200,000 to MOP 300,000 80% 60%
MOP 300,000 to MOP 500,000 90% 72%
Over MOP 500,000 72%