 |
Jan 2008
|
|
|
The Legislative Assembly has recently approved certain tax incentives proposed by the Chief Executive of the Macau SAR in his Policy Address for the financial year 2008, some in full and some in part after certain amendments. Please find below a summary of the approved tax incentives for the financial year 2008 for your reference.
- Macau industrial tax for financial year 2008 will continue to be fully exempt.
- The tax free income threshold for Macau complementary tax is increased from MOP32,000 to MOP200,000 for income derived in the financial year 2007. The new progressive tax rates are as follows:
| |
|
Taxable income |
Tax rates |
|
Less than MOP200,000 |
0% |
|
MOP200,001 to MOP300,000 |
9% |
|
Over MOP300,000 |
12% | |
- The tax free income threshold for Macau professional tax is increased from MOP95,000 to MOP120,000 for income derived in the financial year 2008. The new progressive tax rates are as follows:
| |
|
Taxable income |
Tax rates |
|
Less than MOP120,000 |
0% |
|
MOP120,001 to MOP140,000 |
7% |
|
MOP140,001 to MOP160,000 |
8% |
|
MOP160,001 to MOP200,000 |
9% |
|
MOP200,001 to MOP280,000 |
10% |
|
MOP280,001 to MOP400,000 |
11% |
|
Over MOP400,000 |
12% | |
- The 25% reduction in the Macau professional tax liabilities will continue to be available for income derived in the financial year 2008.
- There is a standard MOP3,500 reduction in the property tax liabilities assessed in the financial year 2008 for both self used and rental properties.
- Tourism tax is exempt for luxury, first class and second class restaurants in the financial year. Tourism tax is also exempt in the financial year 2008 for restaurants located inside the following premises:
- hotels that are two-star to five-star in grade;
- serviced apartment style hotels that are three-star and four-star in grade; and
- tourism complexes that are four-star and five-star in grade.
- Stamp duty for insurance policies written or renewed in the financial year 2008 and stamp duty for banking transactions in the financial year 2008 continue to be exempt.
- An adult who holds a Macau permanent resident identity card and who does not own any properties other than one car-parking space is eligible to enjoy exemption on stamp duty levied on the purchase of a residential property for self-use purposes for the first MOP3,000,000 of the transfer consideration. The transfer consideration in excess of MOP3,000,000 will be subject to stamp duty. The stamp duty exemption has a three-year lock-in period, such that unless the residential property so purchased is transferred as part of a deceased estate, the purchaser will have to pay back the stamp duty that was originally exempt on the purchased property if such residential property is sold within 3 years after the stamp duty exemption granting date.
- Licence fee for advertisements posted or placed in public areas and the stamp duty thereon, except for advertisement of tobacco products and advertisement placed on the racing track of Grand Prix, are exempt in the financial year 2008.
- Land rent below MOP100 shall not be collected by the Macau Finance Bureau in the financial year 2008. However, any such amount already collected shall not be refunded.
The overall aim of the tax incentives is to lessen the burden of small and medium sized enterprises and to improve the livelihood of the general public in Macau. Whilst it is generally believed that the direction of the Macau government policy would remain stable at least for several years, the extension of the above-listed tax incentives beyond the financial year 2008 is subject to approval by the Legislative Assembly on an annual basis unless such amendments are written into the relevant tax laws. | |
| | |
|
