Taxation of international executives
Professional tax is levied on all personal income arising in or derived from Macau Special Administrative Region (SAR). Taxpayers are divided into two groups: employees and professional practitioners.
There is no distinction between residents and non-residents for tax purposes. An individual is regarded as being a resident of Macau (SAR) if they possess an identity card issued by Macau (SAR). A non-resident is normally required to apply for non-resident working permit in order to work in Macau (SAR).
Net taxable income is taxed at progressive rates from 7 percent to 12 percent. Different rates initially apply to non-residents without working permit (e.g. business travelers), but this differential disappears at higher levels of income. Generally, all non-cash fringe benefits provided to employees are subject to income tax.
The official currency of Macau (SAR) is the Macau Pataca (MOP).
Herein, the host country/jurisdiction refers to the country/jurisdiction to which the employee is assigned. The home country/jurisdiction refers to the country/jurisdiction where the assignee lives when they are not on assignment.
All information contained in this publication is summarized by KPMG, a Macau (SAR) partnership and a member firm affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity, based on Law No. 21/78/M introduced in September 1978 regarding Macau (SAR) Complementary Tax and the further amendments made by Law 21/2019 in December 2019, personal income tax imposed under Law No. 2/78/M in February 1978 and the further amendments made by Executive Order No. 267/2003 in December 2003, property tax under Law No. 19/78/M in August 1978 and the further amendments based on Law No. 1/2011 and Law No.1/2018, stamp duty tax imposed under Law No. 17/88/M, and Law No.4/2010 regarding social security system and further amendment made by Executive Order No. 357/2016 and Law No.6/2018.
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