Income tax in Macau
INDIVIDUAL TAXATION
Residents are taxed only on their income from sources in Macau. An individual is regarded as resident in Macau if he has an identity card issued by the authorities in Macau or if he has a permanent resident permit issued by the Macau Immigration Department. Married couples are taxed separately on professional income.
RENTAL INCOME
Income from property is taxed separately from other income.
Property Tax
Property tax is levied on real property (buildings) situated in Macau. The property owner is liable to pay for this tax.
For leased property, the tax is levied at 10% on the net rental income. A standard deduction of 10% is granted to cover repairs and maintenance, and certain property-related expenses. A standard annual deduction of MOP3,500 (US$438) is allowed for all properties.
For other properties, the tax is levied at 6% on the assessable rental value of the property. A standard deduction of 10% of the rental value is granted to cover repairs and maintenance, and certain property-related expenses. A standard annual deduction of MOP3,500 (US$438) is allowed for all properties.
The property tax is expected to go down in 2011, leased properties will be taxed at 10% and other properties will be taxed at 6%.
CAPITAL GAINS
Complementary Tax
Capital gains are subject to complementary tax, which is levied at progressive rates.
COMPLEMENTARY TAX 2017 |
|
| TAX BASE, MOP (US$) | |
| Up to 600,000 (US$75,000) | |
| Over 600,000 (US$75,000) | |
PROFESSIONAL INCOME
Taxable persons include all employees and professionals. There are two categories of taxpayers, i.e. Group I for hired employees (including directors), and Group II for professional practitioners or self-employed individuals, e.g. designers, engineers and technicians, veterinarians, doctors, pharmacists and dentists, nurses and other nursing professionals and educators.
Group I taxpayers are subject only to professional tax, while Group II taxpayers are subject to both professional tax and complementary tax.
A standard allowance of 25% is deductible from the net taxable income (total income less non-taxable income for Group I taxpayers, or business deductions for Group II taxpayers).
A 25% reduction on total professional tax payable is granted to all professional taxpayers.
Professional Tax
Individuals earning professional income and Group I taxpayers pay professional tax, levied at progressive rates.
PROFESSIONAL TAX |
|
| TAXABLE INCOME, MOP (US$) | |
| Up to 144,000 (US$18,000) | |
| 144,000 - 164,000 (US$20,500) | |
| 164,000 - 184,000 (US$23,000) | |
| 184,000 - 224,000 (US$28,000) | |
| 224,000 - 304,000 (US$38,000) | |
| 304,000 - 424,000 (US$53,000) | |
| Over 424,000 (US$53,000) | |
For 2018, the tax-free threshold for professional income is MOP144,000 (US$18,000).
PROPERTY TAX
Land Tax
Leasehold land is subject to land tax. The calculation of the tax payable depends on the location and type of land.