Financial Services Bureau - 2020 Tax Relief Measures (Summary)

According to the Law no. $leiNo1$ - the Government Budget of Financial Year 2020, amended by the Article no.3 of Law no.$leiNo2$, stated the following tax relief measures which are managed by the Financial Services Bureau:

Business Registration Tax
Exemption of business registration tax. (View details) (Article 10)*

Land Rental
Exemption of land rental under MOP$100.00. (View details) (Article 26)*

Property Tax

(1) Exemption of property tax levied on residential units of Macau residents.
(2) Property tax levied on properties registered for the purposes of offices, commercial, industrial, hotels and similar activities:
- Fixed deduction of MOP 3,500
- Deduction of 25% on the remaining property tax
(3) Fixed deduction of MOP3,500 on the payable property tax of Macau residents for other purposes not mentioned above.

If the tax subject of (1) and (3) are of two or more natural persons (individuals), its property tax can be similarly deducted the aforementioned amount if and only if one of them is resident of Macao SAR. If the tax subject is legal person, individual commercial entrepreneur or non-resident of Macao SAR, it is not eligible for such deduction. (View details) (Article 20)

The urban property tax rate for leased premises will be reduced to 8%. (View details) (Article 21)*

Profits Tax

Exemption allowance for profits tax assessment in 2019 is MOP$600,000.00, (View details) (Article 22)*,additional deduction of up to MOP300,000 for tax payable (View details) (Article 22)

Companies, which have already registered as Group A taxpayer in the FSB, will be able to deduct from their taxable revenues 300% of the first MOP3 million spent on qualifying research and development activities, and 200% of any additional R & D expenditure, subject to a cap of MOP15 million. (View details) (Article 23)*

In 2020, the income obtained or generated in Portuguese-speaking countries shall be exempt from Profits Tax, when the relevant profits tax have been paid in that countries. (View details) (Article 24)*

Cash or goods donated in response to Coronavirus will be regarded as an expenditure or loss to the fiscal year if the taxpayer donates to social organizations of public interest and charitable organizations in Macau or in Mainland, as well as national institutions and their departments at or above country-level government in Mainland China. (View details) (Article 24-A)

Salaries Tax
30% exemption on salaries tax and the exemption allowance for its assessment in 2020 is MOP$144,000.00. In case of the following situation: employer should withhold tax from causal worker whose daily salary is over MOP$686.00 or employee whose monthly salary is over MOP$17,143.00. Please refer to the Simulation Calculation disposal in website of FSB. In addition, exemption allowance for part-time and employee who are aged 65 or above or with permanent disability level of or above 60%, is adjusted to MOP$198,000.00. (View details) (Article 18)

70% of the Salaries Tax paid for the assessment year 2018 will be refunded to Salaries Taxpayers who hold a Macao Resident Identity Card on 31 December 2018, up to a ceiling of MOP$20,000.00. (View details) (Article 19) Cash or goods donated in response to Coronavirus will be regarded as an expenditure or loss to the fiscal year if the salaries tax group 2 taxpayer donates to social organizations of public interest and charitable organizations in Macau or in Mainland, as well as national institutions and their departments at or above country-level government in Mainland China. (View details) (Article 24-A)

Stamp Duty
Exemption of stamp duty on insurance contracts and banking service charges. (View details) (Article 11)*

Exemption from stamp duty on auctions of products, goods and property, or movable or immovable property. (View details) (Article 13)*

Exemption of stamp duty on all admissions of performance, exhibition or any kind of entertainment. (View details) (Article 14)*

The issuance, acquisition and the onerous transfer of PRC bonds, local bonds and central corporate bonds, will be exempt from the applicable stamp duty. (View details) (Article 15)*

Exemption of stamp duty payment on the issuance and renewal of permits and licenses. (View Details) (Article 15-A)

Exemption of stamp duty on putting up or placement of advertisements, signboards and publicity materials that were already exempted from the license fee. (View details) (Article 17)*

Stamp Duty (Conveyance of Property)

Exemption of stamp duty on the first MOP$3,000,000.00 of fixed asset value which is only applicable for Macao permanent adult residents, an application form “Confirmation of exemption from stamp duty” should be submitted and confirmed, this is not applicable to the taxpayers who have received such an exemption in previous years or the current financial year.

When the immovable property is acquired by two or more taxpayers, of which only the eligible taxpayer is entitled to receive the tax exemption proportionally; moreover, as pursuant to the provision of the same article, if the acquirer of the immovable property is a couple, and either of the two is not the proprietor of the immovable property as indicated, the acquirer is entitled to receive the relevant tax exemption. (View details) (Article 12)*

Tourism Tax

Exemption of tourism tax on the services provided by luxury, class 1 and class 2 restaurants in group one classification indicated in article 6, and also on proprietary business activities provided by similar business in group one classification of group 1, 2 and 3 hotels indicated in article 5 of the Decree-Law no. 16/96/M, the submission of M/7 is not required. (View details) (Article 16)*

Starting from 01 May 2020, waive of tourism tax for six months on hotels of group 1, 2 and 3 indicated in article 5 of the Decree-Law no. 16/96/M, and also on luxury and class 1 ballrooms and bars of similar business in group 2 and 3 classification indicated in article 6, as well as health clubs, saunas, massage parlours and karaokes indicated in article 1(b) of Tourism Tax Regulation, the submission of M/7 is required monthly. (View details) (Article 16)

Circulation tax
Exemption or refund of the year 2020 circulation tax paid on vehicles namely taxis, trucks, vans, tractors, coaches, instruction vehicles, school buses, overland cross-border passenger vehicles. and vehicles registered by hotels, travel agencies and non-driver car rental companies. (View details) (Article 24-B)