Macau SAR

Corporate residence is generally determined by reference to the place of establishment.

Permanent establishment (PE)

The definition and content of PE in Macau SAR are similar to those in Article 5 of the OECD's Model Tax Convention on Income and on Capital which includes Fixed Place PE and Agency PE, but excludes facilities for carrying out activities or combinations of activities that are preparatory or auxiliary in nature. However, to align with the current economic development in the Macau SAR, the New Tax Code explicitly states that facilities established by foreign entities for holding exhibitions, conferences, seminars, and trade fairs in the Macau SAR will be considered as PEs.

Besides, the general definition of PE in comprehensive double taxation agreements typically includes a service PE, stipulating that a service PE is established when employees of a foreign entity render services in a jurisdiction for a period exceeding 183 days or six months within any 12-month period. However, this provision is absent from the New Tax Code’s definition of PE.  Therefore, if a foreign entity is engaged in commerical/industrial activities and/or rendering services in Macau SAR, the foreign entity shall perform industrial tax registration according to Article 9 of the Macau Industrial Tax Regulation and the resultant gain from such commercial/industrial activities and/or services rendered will be subject to complementary tax.