Profits tax is levied on individuals or legal entities, regardless of their residence or domicile. It is based on the total revenue derived from industrial and commercial activities in the Macao SAR, as specified in Article 3 of the Profits Tax Regulation.
Responsibilities and Obligations of Group A Profits Taxpayers
- The“Profits Tax - Incomes Declaration for Group A Taxpayer” (Form M/1) must be submitted annually between April and June;
- All amounts in the “Profits Tax - Incomes Declaration for Group A Taxpayer” (Form M/1) must be declared in Pataca (MOP), using whole units;
- The “Profits Tax - Incomes Declaration for Group A Taxpayer” (Form M/1) must be signed by the taxpayer, legal representative, or trustee, along with the responsible accountant or certified public accountant;
- Accounting books and related documents must be archived and properly maintained for five consecutive years;
- The obligation to pay taxes.
Regulations for Mandatory Inclusion in Group A of Profits taxpayers
- Joint-stock limited companies and joint-stock limited partnership;
- Ultimate parent entities of multinational enterprise groups;
- Any type of company with a capital of no less than MOP 1 million;
- Any type of company with an average taxable profit of no less than MOP 1 million over the past three years.
Tax Rates and Calculation Method
The profits tax is calculated according to the tax rates table specified in the Profits Tax Regulation, as amended by Law No. 4/2005. Should the Macao SAR introduce annual tax relief measure(s), the tax will be calculated based on the relevant provisions.
- If the tax amount does not exceed MOP 3,000, it must be paid in September;
- If the tax amount exceeds MOP 3,000, it will be divided into two equal instalments. The first instalment is due in September, and the second in November;
- Failure to pay the first instalment will result in the immediate due date of the second instalment.
- Failure to declare, late declaration, incorrect declaration, non-payment, or late payment will result in fines and additional interest charges.
Rights of Group A Profits Taxpayers
- Taxpayers who disagree with the taxable income assessment may submit a written appeal to the Profits Tax Review Committee within 20 days of receiving the “Profits Tax Income Assessment Notification” (Notification M5);
- Submitting an appeal within the specified period will temporarily suspend the execution of the tax payment;
- If the appeal is entirely rejected, a handling fee of up to 5% of the tax amount may be imposed by the committee;
- The resolution of the Review Committee will be communicated to taxpayers in writing;
- Taxpayers may file a statement of opposition within 15 days or initiate a judicial appeal within 45 days against the committee's decision, although this does not suspend the execution of the tax payment.
- Inquiry;
- Tax payment;
- Application.
