Macau (SAR) Tax with Calculator

Link to Macau Tax Calculator: http://www.dsf.gov.mo/tax/tax_downloadapps.aspx?lang=en

Introduction

·         Individuals are subject to tax on income arising in Macau. Residency of an individual has no significance in determining tax liability.

·         Professional Tax is imposed on employment and self-employment income arising in Macau. For the purpose of tax, taxpayers are divided into employees and professional practitioners.

·         Tax Year End is 31st December.

·         PAYE System is used to withhold taxes

·         TFN: When an individual commences employment, they will be requested to quote their Tax File Number (TFN) to their employer.

·         Tax Amount is rounded up to the nearest dollar.

·         When are estimates/prepayments/withholding of tax due in Macau? For example: monthly, annually, both, and so on.

·         Monthly for expatriates, quarterly for Macau residents and non-residents with a working permit.

Types of Taxable Compensation

·         Employment income and remuneration

·         Daily wages

·         Salaries

·         Service fees

·         Bonuses

·         Commissions

·         Allowances and gratuities

·         Directors’ fees

·         Share of profits

·         Share options

·         Non-cash benefits such as electricity, servants, car benefits, telephone, and so on.

Professional Tax Rates

Taxable Income	Tax Rate
First 1,44,000	0
Next 20,000	7
Next 20,000	8
Next 40,000	9
Next 80,000	10
Next 120,000	11
Remainder	12

Note 1: For 2018, an additional 30% relief is granted on the total amount of tax payable.

Note 2: Non-residents are taxed at the same rates as residents. However, non-residents are subject to a minimum tax rate of 5 percent.

Note 3: 60% of the Salaries Tax paid for the assessment year 2016 will be refunded to Salaries Taxpayers who hold a Macao Resident Identity Card on 31 December 2016, up to a ceiling of MOP$14,000.00.

Social Security

As stipulated in the Executive Order, with effect from 1 January 2017, the contribution amounts are as follows:

·         Long-term employee:
90 MOP per month (employer’s contributions: 60 MOP, employee’s contributions: 30 MOP);

·         Casual worker:
90 MOP per month for each casual worker who works 15 days or more in the month (employer’s contributions: 60 MOP, employee’s contributions: 30 MOP);
45 MOP per month for each casual worker who works less than 15 days in the month (employer’s contributions: 30 MOP, employee’s contributions: 15 MOP).

·         In accordance with the provisions of Law 4/2010, the employer can deduct the employee’s portion of contributions from his/her wages.

Employer Provided Housing Allowance

·         Certain employer provided housing allowances (employer’s contribution to rent)

Non-monetary annual housing allowance is subject to professional tax with a taxable limit of the lower of the annual rental of the place and 15 percent of the total annual cash remuneration received by the employee.

·         Certain employer provided housing allowances (monetary compensation)

Housing allowances provided by the employer are subject to professional tax with a non-taxable limit of MOP 3,320 per month in 2017.'

Rental Allowance

Rental allowance provided by the employer is subject to professional tax with non-taxable limits as follows:

·         One bedroom: MOP 3,500/month

·         Two bedrooms: MOP 4,700/month

·         Three bedrooms: MOP 8,700/month

·         Four bedrooms: MOP 10,000/month

·         Five bedrooms: MOP 12,000/month

Other Exempt Income

·         Employers’ Contributions to Medical and related schemes and to approved pension schemes are not included in taxable income.

·         Marriage allowance: Marriage allowance provided by the employer is subject to professional tax with a non-taxable limit of MOP 3,735 in 2017.

·         Birth allowance: Birth allowance provided by the employer is subject to professional tax with a non-taxable limit of MOP 3,735 in 2017.

·         Death allowance: Death allowance provided by the employer is subject to professional tax with a non-taxable limit of six times monthly remuneration.

·         Funeral allowance: Funeral allowance provided by the employer is subject to professional tax with a non-taxable limit of MOP 4,565.

·         Transportation allowance: Different types of transportation allowances may be provided by the employers such as the transport of remains, business trips, home trips, and expenses related to setting up an entity. These are all taxable with non-taxable limits depending on the nature of the trip as well as the origin and destination of the trip.

·         Non-cash benefits received by employees: There is a deemed taxable value for non-cash benefits (maximum) as follows:

·         Electricity MOP 500/month

·         Servants: MOP 1,500/month

·         Car benefits: MOP 500/month

·         Telephone: MOP 720/year

Deductions

A general personal deduction of 25 percent of total remuneration.

Stock Options and Share Awards

·         Stock Options granted by employers with respect to employees’ services in Macau are subject to professional tax.

·         Share Awards granted by employers with respect to employees’ services in Macau are subject to professional tax. The share awards gains are subject to tax in Macau in the year in which share awards vests to the individual. Employers are required to notify the Macau tax authorities within 30 days after granting stock options or share awards.

Reporting

·         For residents and non-residents with a working permit, tax payment is made quarterly (15 January, 15 April, 15 July, and 15 October) by the employer and the filing of detail remuneration is not required. For expatriate employees, a tax return is filed monthly, 15 days after receiving the remunerations, with details of remuneration paid to individuals.

·         Employers in Macau must prepare and submit annual tax returns (M3/M4)  is to be filed by the employer within January and February with respect to salaries paid to residents and non-residents and the professional tax withheld.

·         Group 1 taxpayers who have worked for more than 1 employer, and Group 2 taxpayers who have or do not have organized accounts, must submit the “Salaries Tax – Income Declaration – Form M/5

·         Employees with income from more than one employer also are required to file an annual return form M/5 before the end of February of the following year.

·         Social Security Fund Electronic Filing ServiceHe/she can log in to the Electronic Filing System using his/her ePass account, report the employment information of his/her local employees who belong to the obligatory system, enroll his/her employees as beneficiaries of the FSS, download the Contribution Payment Advice, view the employment information of employees and the related payment records, and transmit the relevant information to the FSS by means of electronic transmission.

Link to Macau Tax Calculator: http://www.dsf.gov.mo/tax/tax_downloadapps.aspx?lang=en