Value-added tax (VAT)
There is no VAT regime in Macau SAR.
Customs duties/import tariffs
Apart from consumption tax imposed on tobacco and spirits entering into Macau SAR, there are no customs duties/import tariffs in Macau SAR.
Consumption tax (excise duty)
Consumption tax is imposed only on tobacco and spirits entering into Macau SAR.
There are two methods for determining the amount of consumption tax payable, by quantity or by value. The former method of assessment is based on the weight or volume of goods and the latter is based on the price of the goods imported into Macau SAR. The rate of consumption tax varies depending on the classification of the imported goods.
Property tax is imposed annually on the owner of buildings situated in Macau SAR. This is first payable after acquiring a property or upon the expiry of the property tax exemption period, if applicable. Different exemption periods are granted, depending on the location of the property. Additional exemption periods may apply in special cases.
For leased properties, property tax is charged at 10% on the actual rental income, and, by application, a maximum deduction based on 10% of the rental income derived to cover repair and maintenance expenses incurred will be granted if approved by the MFB. According to the Budget for the financial year 2020 approved by the Legislative Assembly (2020 Budget), the property tax rate for leased properties has been reduced from 10% to 8% for the tax year 2020.
For self-use properties, property tax is charged at 6% on the official ratable value as established by the appointed committee of the MFB. A deduction of 10% of the official ratable value to cover repair and maintenance expenses will be automatically granted for self-use property.
According to the 2020 Budget, there is a standard MOP 3,500 reduction in the property tax liabilities assessed in the tax year 2020 for both self-used and rental properties. This incentive does not apply to corporate and non-Macau residents. Due to the outbreak of COVID-19, there will be enhanced tax deduction of 25% on property tax for properties designated for office, hotel, commercial and industrial usage. Residential properties held by Macau residents are fully exempt from property tax.
Stamp duty is payable on certain types of documents and stampable transactions at a small fixed amount or at rates ranging from 0.1% to 10% on the value represented by the documents and transactions.
The charge to stamp duty has been extended to property transfers and the irrevocable transfer of certain assets. Stamp duty at progressive rates ranging from 1% to 3% is payable on transfer of immovable property with a surcharge of 5% on the duty payable, resulting in effective stamp duty rates of 1.05% to 3.15%. The irrevocable transfer of certain assets without consideration is subject to a 5% stamp duty.
Insurance policies, written or renewed, and banking transactions have been exempt from stamp duty since 2005. This exemption has been approved by the Legislative Assembly and will continue to be available in the tax year 2020.
Admission tickets for performances, exhibitions, and any kind of entertainment programmes are exempt from stamp tax for the tax year 2020, as approved by the Legislative Assembly. This exemption, if extended, will be published by the Macau government on an annual basis.
Additional stamp duty for acquisition of second residential property and beyond
A transferee acquiring residential property will be subject to additional stamp duty if the transferee owns other residential property at the time of acquisition. Such additional stamp duty is applicable to individual, corporate, as well as a transferee acquiring more than 80% of a company that owns Macau residential property. The applicable rate is 5% on the transfer consideration for acquisition of the second residential property and 10% on the transfer consideration for acquisition of the third residential property and onward. A transferee holding only one residential property but wishing to dispose it and acquire another residential property as replacement can apply for refund of the additional stamp duty paid if the disposal takes place within one year from the date of acquisition.
Special Stamp Duty (SSD)
The transferor of a residential property, commercial property, office, car-parking space, or property under construction is subject to SSD at 20% on the value of the property if the property is resold within a year of its purchase. The SSD rate is reduced to 10% if the resale takes place between one and two years after the purchase. The SSD is also applicable to transfers of an 80% or more shareholding interest in a Macau company that owns properties.
Buyer Stamp Duty (BSD)
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%, on top of the existing Stamp Duty and SSD, if applicable.
Professional (Salaries) Tax
Professional Tax is payable by anyone receiving income from employment services performed in Macau SAR or from a Macau employment. In Macau SAR, the Professional Tax reporting, withholding, and remittance obligations rest with the employer.
There is a pay-as-you-earn (PAYE) system, similar to those used in other countries, which is applicable to salaried individuals only. The employing entity is obligated to report and collect the amount of Professional Tax payable from its employees each month and remit such payments to the MFB before the 15th day of the month following the quarter-end for local resident employees and foreign employees with valid work visas.
Social security fund contribution
Social security fund contribution in the total amount of MOP 90 per month is payable for resident employees. The employer contributes two-thirds of the amount (i.e. MOP 60) and the employee contributes one-third of the amount (i.e. MOP 30).
Annual industrial tax
The annual industrial tax has been exempted for the tax year 2020 and has been exempted on an annual basis by the Macau government since 2002.
Under the Industrial Tax Code, all commercial or industrial operations carried out in Macau SAR are subject to industrial tax at the beginning of each year. The amount of the tax is dependent upon the nature of the business. The table below is an illustration of the tax amounts applicable to certain types of businesses in Macau SAR.
|Type of business||Tax (MOP)|
Special gaming tax
Special gaming tax is levied at 35% on the gross gaming revenue derived by gaming concessionaires authorised to carry on the operation of games of chance in Macau SAR under Law 16/2001.
Tourism tax is imposed at the rate of 5% on bills of services, excluding telecommunication and laundry services, and service charges of up to 10% rendered in Macau SAR by establishments such as hotels, guest houses, dancing halls, night clubs, massage/sauna parlours, gymnasiums, karaoke, and the like. Such tax is generally borne by consumers.
Restaurants are exempt from tourism tax in the tax year 2020 and have been exempt, via an exemption published on an annual basis by the Macau government, since 2002. Due to the outbreak of COVID-19, services rendered in hotels, dancing halls, bars, gymnasiums, massage/ sauna parlours and karaoke lounge are fully exempt from tourism tax from 1 May 2020 to 31 October 2020.
Motor vehicle tax
Motor vehicle tax is imposed on the sale of new motor vehicles to consumers and the importation of new motor vehicles for self-use. Exemptions are available to certain persons and organisations and for certain specific usages. Generally, motor vehicle tax is levied based on the listed selling prices as registered with the MFB. The rate of motor vehicle tax varies depending on the type of motor vehicle and its value.
Land rent is payable by lessees of leasehold land in Macau SAR on an annual basis according to the amount specified in the relevant lease contract.
According to the 2020 Budget, land rent below MOP 100 shall not be collected by the MFB in the tax year 2020. However, any such amount already collected shall not be refunded.