TAX SYSTEM OF MACAO SAR - Profits Tax - Policies, Declaration Process and Rates

Sep 19, 2026

Macao SAR profits tax framework outlines currency (MOP), the tax authorities (Financial Services Bureau), and the tax year from 1 January to 31 December. It sets accounting principles under Macao financial reporting standards, explains mandatory tax registration for businesses, and defines the tax object as Macao-source income regardless of residence. Profits tax applies at rates up to 12%, with listed tax treaty jurisdictions and double-tax relief. The document also summarizes 2022 profit tax incentives, declaration filing timelines, commencement and termination submission requirements, and tax loss carry-forward rules for Group A taxpayers.

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CategoryInvoices

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Tax system of Macao SAR

Profits Tax policy framework

Profits Tax incentives policies

Tax declaration process

TAX SYSTEM OF MACAO SAR 1. The Profits Tax Policy Framework of Macao SAR 􀂄 Currency Macao Patacas (MOP) 􀂄 Tax authorities Financial Services Bureau ( FSB) 􀂄 Tax year Macao SAR follows a calendar fiscal year. That is from 1 January to 31 December. 􀂄 Accounting principles / Financial statements Financial Reporting Standards of Macao / General Financial Reporting Standards of Macao apply, depending on the nature of business. 􀂄 Registration Any individuals / legal entities carry on businesses in Macao SAR, are required to complete the tax registration before the commencement of business. A new Macao SAR incorporated company / branch is also required to register with the Macao SAR Company Registry simultaneously. 􀂄 Tax object Any individuals / legal entities whose income arising from Macao SAR is subject to profits tax, irrespective of their place of residence or head office. 􀂄 Profits Tax Rate Profits tax rate of Macao SAR is up to 12% . 􀂄 Tax treaties and double taxation relief The double tax arrangements / agreements of Macao SAR are effective with the following jurisdictions: 1) Mainland China 2) Portugal 3) Mozambique 4) Cabo Verde 5) Vietnam 6) Hong Kong SAR 2. The Profits Tax Incentives Policies of Macao SAR For the year 2022, there are a number of preferential tax incentives to encourage different industries or activities, mainly including the following: 􀂄 Annual Tax Incentives (according to year 2022 Macao annual government budget) : 1) Exemption allowance for Profits Tax assessment is MOP0.6 million. 2) Income generated from Portuguese-speaking countries shall be exempt from profits tax, provided that the corresponding tax on the above income has been paid in the abovementioned countries. 3) Enhanced deductions are provided on R& D expenses for the scientific and technological innovation business, with the total enhanced deduction limit of MOP15 million. 4) Interest obtained through state debt securities, which are issued in the Macao SAR, as well as income obtained from the purchase and sale, redemption or other availability, shall be exempt from profits tax. 􀂄 Statutory Tax Incentives 1) Tax exemption on income derived from the scientific and technological innovation business is for 3 years. 2) Income generated from the finance leasing related business is subject to a concessionary tax rate of 5% . Income shall be exempt from profits tax if it is generated from the finance leasing related business from overseas and the tax has been paid overseas. 3) Interest gains derived from, and gains from trading, redemption, or other incomes on disposal of, the national bonds, local government bonds and central enterprise bonds, of the People’s Republic of China issued in Macao SAR, shall be exempt from profits tax. 􀂄 Losses Profits Tax Group A taxpayers may carry forward tax losses and offset future taxable profits for the recent three years. 3. The Tax declaration Process of Macao SAR 􀂄 Declaration of commencement of business operation The following documents need to be submitted 30 days before the expected date of business commencement: Individuals 1) Industrial Tax – Form M/1 – New Registration/Amendment Form; 2) A copy of identity document. Legal entities 1) Industrial Tax – Form M/1 – New Registration/Amendment Form; 2) Either a copy of company contract, article of association or the business registration which has been published in the Official Gazette of Macao SAR Government; 3) A copy of the identity document of all shareholders or legal representatives, or the letter of authorization of the authorized person who has been authorized for the application for registration. 􀂄 Filing 1) Profits Tax taxpayers are required to submit the annual tax return ( Profits Tax Declaration Form M/1) to the FSB. 2) The tax return should be submitted to the FSB within the following periods: Group A: within April to June of the subsequent year;

FAQs

What is the Macao SAR profits tax tax year?

The tax year follows the calendar fiscal year, from 1 January to 31 December.

Who must complete tax registration in Macao SAR?

Any individuals or legal entities carrying on business in Macao SAR must complete tax registration before commencing business.

What are the annual filing periods for profits tax returns?

Group A taxpayers submit the annual tax return within April to June of the subsequent year, while Group B submits within February to March of the subsequent year.

Sep 19, 2026

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