Macao’s tax system is simple, low-cost, and business-friendly. With a corporate tax rate of just 12% and personal income tax capped at 12%, it offers one of the most attractive tax environments in the world. There are no wealth, inheritance, or gift taxes, making it appealing for both businesses and individuals. While Macao has minimal anti-avoidance rules, it actively participates in international tax transparency through CRS and FATCA agreements, ensuring compliance with global standards.
Macao’s Tax System overview
| Corporate Income Tax: | 12% |
| Personal Income Tax: | 7%-12%, progr. |
| Gift Tax: | None |
| Inheritance Tax: | None |
| Wealth Tax: | None |
Legal System
Macao is a Special Administrative Region (SAR) of China, and applies civil law with Portuguese and German origins.
Currency and Exchange Controls
The currency is the Macao Pataca (MOP). Macao has no foreign exchange controls.
Corporate Income Tax
Corporations resident in Macao are subject to Complementary Tax on world-wide income at a rate of 12% on profits over MOP 300,000.
Personal Income Tax
Residents of Macao are subject to tax on income from employment in Macao (Professional Tax) at rates from 7% to 12%. Capital gains and investment income are not taxable to individual recipients, except dividends from local corporations.
Anti-Avoidance Rules
Macao has no has General Anti-Avoidance Rules, no Transfer Pricing rules, no Thin Capitalization rules, and no Controlled Foreign Corporation (CFC) rules.
Trusts
Macao does not have a domestic trust law, and trusts and similar legal arrangements are not authorized. However, under the Law on Offshore Activity (Law No. 58/99/M) trust management companies may be established to conduct offshore business, and must be licensed by the AMCM.
Double Tax Treaties (DTTs)
Macao has signed DTTs with Belgium (not in effect), Cabo Verde, China, Hong Kong, Mozambique, Portugal, and Vietnam.
OECD Multilateral Convention
Macao is a signatory to the Multilateral Convention on Mutual Administrative Assistance in Tax Matters, which requires exchange of information “on request,” and authorizes spontaneous and automatic exchange.
Common Reporting Standard (CRS)
Macao is a party to the Multilateral Competent Authority Agreement (MCAA) and has implemented CRS for the automatic exchange of information. As of January, 2021, Macao has 61 activated relationships.
FATCA
Macao has a FATCA Model 2 IGA with the US for automatic information exchange.
