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Introduction to Macao Taxation

Scope of charges	Basis of tax computation	Exemption (Tax incentive arrangement)
Property Tax	For rented property, rental income is subject to 16% tax.For non-rented property, rental income is deemed by the tax authority and the amount is subject to 10% tax.	100% exemption:For immoveable property used as industrial building.Partial exemption for rental properties used for industrial purposes:For immoveable property located on Macao, exemption period last for 5 years.For immoveable property located on outbound island, exemption period last for 10 years..(Note 1)
Business Registration Tax	Depending on the nature of business, the tax rates are different. However, all business entities have to pay a fixed fee of MOP300 per year.	50% tax allowance is granted to fully exempted outbound business establishments (exclude offshore bank).(Note 2)
Profits Tax	Profits tax are charged on net profits of business entities, Tax is calculated at progressive rateFor net profits of MOP300,000 (USD37,500) or more, the average tax rate is 15%.For net profits less than MOP300,000 (USD37,500), tax is charged from 2% to 15 %	It can entitle to 50% tax allowance(Note 3)
Salaries Tax	Income from employment will be subject to Salaries Tax.For Freelance workers, employees and professionals with annual income more than MOP85,000 (USD10,625), they are subject to Salaries Tax rate ranging from 10% to 15%.For professionals, tax will be calculated in accordance with their income earned or estimated income by the tax authority, depending on whether complete accounting records be kept by the taxpayers.	No exemption
Tourism Tax	A 5% tax is levy on income of hotel, fitness center, sauna, massage center and karaoke.	Full exemption is granted to hostel and restaurant.(Note 4)
Consumption Tax	Consumption Tax is levy on fuel, lubricants, cigarette and alcoholic drinks. Ad valorem duty will be charged on some kinds of alcoholic drinks.For other consumption goods, tax will be levy at fixed rate.	Fuel for industrial purposes is exempted from consumption tax(Note 5)
Tax on Motor Vehicle	For newly imported motor vehicles, tax is levy on export selling price ranging from 30% to 55%.For newly imported motor cycles and bytes, tax is range from 10% to 30%.	Where such vehicles are used for the purposes of tourism, public transportation and delivery of goods and used by the Government of Macao SAR, tax is fully exempted.(Note 6)
Social Security Fund	Employer has to pay social security fund on monthly basis for its employees.For local employees- MOP30 per personFor non-local employees- MOP50 per person
Stamp Duty	For changes on title of immoveable property with consideration - Stamp duty is levy on 3% of consideration.For changes on title of immoveable property without consideration and other property with value greater than MOP50,000 - Stamp duty is levy on 5% of consideration.For changes on title of immoveable property with intra-group companies, a 0.5% stamp duty will

Note:

Taxpayers have to lodge application of tax emption as stated in Note (1), (2), (3), (4), (5) & (6). Applicant should list out a business plan which must fulfill the following conditions:

- promote industrial development;
- enhance the number of products in new market;
- enhance added value in the production process and
- help modernisation of technology.

(Application form should b submitted to the Government of Macao SAR for approval before implementation on redevelopment, expansion, modification and construction of industrial buildings).