Profits Tax

In accordance to Profits Tax Regulation, Profit tax is levied on income from commercial or industrial activities derived by natural or legal persons in Macao. The Profits tax is taxed at a progressive rate. Tax exemption on income below MOP32.000. For income not exceeding MOP300.000 are taxable from 3% to 9%. Taxable profits exceeding MOP300.000 are taxed at a rate of 12%.

The “budget Law for 2022” approved by Law n º 21/2021, fixed the limit of exemption for income for the year of 2021, on MOP600.000, charging on a rate of 12% to incomes that exceeds that amount. Besides, exemption on Profits Tax for Macao companies which obtained and generated income from Portuguese speaking countries, however is limited to those which incomes has been taxed there.

 

Business Tax

In accordance to Business Tax Regulation, natural and legal persons that carried out commercial or industrial activities in Macao are subject to Business Tax. The amount is fixed and charged according to the table of activities annexed to Business Tax regulations, and mostly taxed at a sum of MOP300 (US$37.5).

The “budget Law for 2022” approved by Law n º 21/2021, the business tax shown in tables 1 and 2 annexed to the regulation will be exempted in 2022.

 

Salaries Tax

In accordance to Salaries Tax Regulation, the tax is imposed on the income for employment. Two groups of taxpayers are subject to Salaries Tax, the 1st Group to persons who exercise any activity on the account of others, either as casual workers or employees; 2nd Group to persons who exercise any activity on their own account, as self-employer professionals. Salaries Tax is calculated at a progressive rates varying from 7% to 12%. Annual income below MOP95.000 are exempted.

The “budget Law for 2022” approved by Law n º 21/2021, fixed the limit of exemption for income for the year of 2022, on MOP MOP144.000, at the same time, it was also granted a 30% deduction on the collectable matter. Also, refund of 60% of the tax paid in 2020 with a maximum amount of MOP 14,000 to taxpayers who are Macao residents.