Macau SAR

Tax incentives for the tax year 2025

The Legislative Assembly approved certain tax incentives proposed by the Chief Executive of Macau Special Administrative Region (SAR) in the Budget for the financial year 2025. The key tax incentives in relation to Macau professional tax include the following:

• The tax-free income threshold for Macau professional tax will be increased from 95,000 Macanese patacas (MOP) to MOP 144,000 for income derived in the tax year 2025. For employees over the age of 65 or proved to be 60% disabled or above, the tax-free income threshold will be further increased to MOP 198,000 for the tax year 2025.
• There will be a 30% reduction in the Macau professional tax liabilities for income derived in the tax year 2025. Together with the standard 25% deduction on the taxable income granted under the Macau Professional Tax Law, the effective tax rate for Macau professional tax is below 6.3%.
• 60% of remitted Macau professional tax for the tax year 2023 will be refunded to Macau residents, with an upper limit of MOP 14,000.