New regulation to foster Macao’s financial leasing business
The Macao SAR Government introduced in April 2019 the revised “Law on Financial Leasing” and the “Tax Incentive Regime for Financial Leasing” in order to develop Macao’s featured financial industry and to promote the development of the city’s financial leasing business in a pro-active manner. The new legislation aims to attract more financial leasing companies from Mainland China and abroad to develop their business activities in Macao.
Under the new regime, financial leasing companies are now considered financial institutions and are no longer regarded as credit institutions. As such, these companies remain subject to financial supervision, but less stringent than that exercised over credit institutions.
The minimum capital requirement of financial leasing companies has been reduced to MOP10 million (US$1.2 million) from MOP30 million. The threshold for what constitutes an administrative body has also been lowered. According to the new regime, only banks and financial leasing companies that are authorised to carry out business in Macao can hold subsidiaries for financial leasing in the city.