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Macao

Taxes

If you want to incorporate in Macao, this article explains the tax laws for a LLC, which is the most common company structure in Macao.

Macao resident companies are taxed on worldwide income. The usual standard rate for offshore income, from our research, and this is not personal tax advice, is 12%. Certain profits derived by approved offshore institutions from prescribed offshore service-related activities are exempt from all forms of taxes. Taxes are lower than average in Macao, profits up to MOP 600,000 are exempted, and profits over that amount are taxed at 12%. This ranks Macao as 42nd overall in terms of CIT globally.

There is no value-added tax in Macao, which ranks the country as 1st when compared to VAT globally. In terms of other taxation, an employer will contribute MOP 60 per month to the equivalent of a social security fund and an employee will contribute MOP 30 per month.

There are no thin capitalization rules in Macao. This refers to any type of laws on companies' debt-to-asset ratios. Dividends received from a Macao entitiy are exempted from tax if they are paid out after-tax profits. Dividends received from a foreign company are usually subject to a complementary tax. Dividends are distributions of earnings of the legal entity, decided by the board of directors, to shareholders. Dividends can be issued as shares of stock, cash payments, or other property. Capital Gains are included in corporate income tax base. A capital gains tax is levied on the profits that a corporation or natural person realizes when they sell sells a capital asset for a price that is higher than the purchase price.

There are no withholding taxes on payments on dividends, royalties and interests to non-resident companies or individuals.
There is no known tax on wealth in Macao. There are no inheritance and transfer taxes. There are real property taxes. There are tax credits and tax incentives for certain capital investments and certain business activities.

The above is not tax or legal advice for your company circumstances. We are able to refer you to a tax advisor in Macao who can properly advise you. Contact us today. Click incorporate now if you are in a hurry, or press the free consultation button above.

Country details

Macao
MOP
Macao
Asia
zh, zh-MO, Portuguese (Portugal)
449,198

Tax treaties

Country Type Date Signed
Argentina TIEA 2014-09-05
Sweden TIEA 2011-04-29
Denmark TIEA 2011-04-29
Cape Verde DTC  2010-11-15
Guernsey TIEA 2014-09-03
Iceland TIEA 2011-04-29
Malta TIEA 2013-05-30
Jamaica TIEA 2012-10-05
Belgium DTC  2006-06-19
China DTC  2009-07-15
Greenland TIEA 2011-04-29
Portugal DTC  1999-09-28
Finland TIEA 2011-04-29
Norway TIEA 2011-04-29
Mozambique DTC  2007-04-04
India TIEA 2012-01-03
Faroe Islands TIEA 2011-04-29
Australia TIEA 2011-07-12
Japan DTC  2014-03-13
United Kingdom TIEA 2014-09-03

Tax treaties Map

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