Macau
EY
21/F, 39 Macau
61 Avenida de Almeida Ribeiro
Macau SAR
Principal Tax Contacts
May Leung
(resident in Hong Kong)
Ivy Chan
ey.com/globaltaxguides
+853 8506-1888
Fax: +853 2878-7768, +853 2832-2500
+852 2629-3089
Fax: +852 2118-4150
Email: may.leung@hk.ey.com
+853 8506-1809
Fax: +853 2878-7768
Email: ivy-ck.chan@mo.ey.com
This chapter relates to the tax jurisdiction of the Macau Special Administrative Region (SAR) of China.
A. At a glance
Corporate Income Tax Rate
3 to 12 (a)
3 to 12 (a)(b)
3 to 12 (a) Withholding
(a) For the 2023 tax year, complementary tax is imposed on taxable profits in excess of MOP600,000 at a rate of 12%.
(b) For details regarding the taxation of capital gains, see Section B.
(c) Macau law does not contain any specific measures imposing withholding taxes except for service fees paid to individuals. Under certain circumstances, interest or royalties received by nonresidents from Macau may be regarded as income from commercial or industrial activities in Macau and taxed at the normal corporate income tax rates.
(d) Dividends are not taxable if they are distributed by entities that have paid corporate income tax at the corporate level on the distributed income.
(e) For details regarding tax losses, see Section C.
B. Taxes on corporate income and gains
Corporate income tax. Companies and individuals carrying on commercial or industrial activities in Macau are subject to complementary tax in Macau. An entity established in Macau is regarded as carrying on business in Macau, and its profits are subject to complementary tax. Non-Macau entities that derive profits from commercial or industrial activities in Macau are also subject to complementary tax.
Rates of corporate income tax. The same complementary tax rates apply to companies and individuals.
Tax depreciation. Tax depreciation allowances are granted for capital expenditure incurred in producing taxable profits. These allowances are calculated based on the actual cost of purchase or construction, or, if the amount of the cost is not available, the book value accepted by the Macau Financial Services Bureau. The following are the maximum straight-line depreciation rates in Macau.
Relief for losses. Group A companies (see Section B) may carry forward losses for three years. Loss carrybacks are not allowed. Groups of companies. Macau does not allow consolidated returns or provide other relief for groups of companies.
D. Other significant taxes
The following table summarizes other significant taxes.
Nature of tax
Property tax, levied annually on owners of real property in Macau; the tax is applied to the actual rental income for leased property and to the deemed rental value for other property as determined by the Macau Financial Services Bureau; up to 10% of the rent or rental value may be deducted to cover repairs and maintenance, and other expenses related to the property; certain buildings are exempt including industrial buildings occupied by their owners for industrial purposes, new residential or commercial buildings for the first six years on the islands of Coloane and
Nature of tax
Taipa and for the first four years in other parts of Macau, and new industrial buildings for the first 10 years on Coloane and Taipa and for the first five years in other parts of Macau
Leased property (tax incentive granted under Law No. 22/2023 for the reduction of property tax for leased properties to 8% for 2024) 8%
Other property 6%
Stamp duty, on selling price or assessable value of transferred property; payable by purchaser 1% to 3% (plus 5% surcharge)
Additional stamp duty; payable on the acquisition of residential properties by corporations or non-Macau residents 10%
Additional stamp duty; payable on the acquisition of a third residential property or additional residential properties by an individual or corporation who owns residential properties
Special stamp duty, on transaction price; payable by transferor of residential properties, shops, offices and car parks; subject to exemptions under certain special circumstances
Property acquired by the vendor on or after 14 June 2011(for residential properties) and 30 October 2012 (for shops, offices and car parks) and sold within one year after acquisition (from the issuance date of the stamp duty demand note)
20%
Property acquired by the vendor on or after 14 June 2011 (for residential properties) and 30 October 2012 (for shops, offices and car parks) and sold in the second year after acquisition (from the issuance date of the stamp duty demand note) 10%
E. Miscellaneous matters
Foreign-exchange controls. The currency in Macau is the pataca (MOP). Since 1977, the pataca has been closely aligned with the Hong Kong dollar (HKD), moving within a narrow band around an exchange rate of MOP103 to HKD100. Because the Hong Kong dollar is officially pegged to the US dollar, the value of the pataca is closely associated with the value of the US dollar. The current exchange rate is approximately MOP8:USD1.
Macau does not impose foreign-exchange controls.
Debt-to-equity rules. Except for the banking and financial services sector, no statutory debt-to-equity requirements or capitalization rules are imposed in Macau.
Country-by-Country Reporting. A company that is the UPE of a multinational group is classified as a Group A taxpayer and must comply with the Country-by-Country (CbC) Reporting requirement.