The Macau tax year is on a calendar-year basis.
Assessments are made by the MFB upon review of the tax returns, which must be lodged before 31 March or 30 June of each year for Group B or Group A taxpayers, respectively.
Payment of tax
A provisional tax payment calculated based on the declared taxable profit for a Group A taxpayer or final assessed profit for a Group B taxpayer is payable in two equal instalments, in September and November. However, if the amount is not greater than MOP 3,000, payment will be requested in one lump sum amount in September. For Group A taxpayers, a final tax assessment will be issued upon completion of the tax assessment by the MFB and additional tax payment, if any, will be due around a month’s time after issuance.
Tax audit process
There is no specific tax audit cycle in Macau. The MFB is empowered by the Macau Complementary Tax Law to carry out a tax audit whenever the information provided by a taxpayer in its tax return is considered unclear or insufficient, and subsequent replies to the MFB’s queries, if any, are considered inadequate.
Statute of limitations
The statute of limitations period is five assessment years from the relevant year of assessment for both Group A and Group B taxpayers.
Topics of focus for tax authorities
The MFB generally focuses on the deductibility of expenses (e.g. staff costs, provisions, depreciation, management fees, payments made to overseas service providers, bad debts, donations).