Tax in Macao

Who is the tax authority?

The Financial Services Bureau (Direcção dos Serviços de Finanças — DSF) administers all Macao taxes. DSF operates under the Macao SAR Government and is separate from PRC mainland tax authorities.

The 1-Country-2-Systems framework under the Basic Law of Macao SAR (in force 20 December 1999, through 2049) preserves independent Macao tax law. DSF administers Salaries Tax, Complementary Tax, Stamp Duty, Property Tax, Tourism Tax, and Vehicle Tax. The DSF e-services portal (Pagamento Online de Receitas Públicas) handles online filings and payments.

Portuguese remains co-official language alongside Cantonese under the Basic Law. Legacy tax statutes reference Portuguese-language codes alongside Chinese. Practitioners with Portuguese-language Macao law familiarity are relevant for complex matters.

What is the tax year and when are returns due?

Macao's tax year is the calendar year (1 January to 31 December). Different tax types have different filing windows.

Most employed individuals do not file Form M/5 because employer withholding handles tax at source. Only individuals with multiple income sources, self-employment, or additional deduction claims need to file. CIT Group B (simplified) filers use Form M/1B, due February–March.

Who counts as a Macao tax resident?

Macao follows territorial taxation — only Macao-source income is taxable. Tax residency is less central here than in worldwide-tax jurisdictions.

Salaries Tax applies to income from Macao employment regardless of the employee's residency status. The test is where income arose, not how many days a person spent in Macao. Cross-border employment — for example, a Hong Kong resident commuting to Macao — follows source-attribution rules that split the income between jurisdictions.

Macao permanent residency aligns with the Basic Law framework: lawful permanent residents with Macao Resident ID cards, plus non-permanent residents with valid stay authorisations. Macao has no exit tax and no deemed-disposition mechanism on emigration.

What are the Professional Tax rates?

Salaries Tax (Imposto Profissional) is Macao's personal income tax on employment income. Progressive brackets apply above a generous tax-free threshold, making this one of the lowest effective personal tax regimes in Asia.

A 30% annual rebate applied at filing reduces effective rates further. The net effective top rate is approximately 8.4%. There is no capital gains tax, no inheritance tax (abolished 2001), no gift tax, and no wealth tax in Macao.

Deep-dive: see expat and cross-border tax in Macao SAR for how the territorial framework applies to inbound assignments.

How does corporate tax work?

Complementary Tax (Imposto Complementar de Rendimentos) is Macao's corporate income tax. Two regimes apply based on company size and accounting formality.

Group A taxpayers (formal-bookkeeping companies with annual profit or capital above MOP 1 million, plus all banks and insurers) file Form M/1 with full audited statements by 30 June. Group B (simplified) file Form M/1B by February–March.

Macao adopted Pillar Two in draft form in 2024, with Domestic Top-up Tax expected effective from fiscal years starting 1 January 2025 for in-scope groups (consolidated revenue above EUR 750 million). This primarily affects the six casino concessionaires and major financial groups. Most Macao SMEs fall well below the threshold.

The Macao-Hengqin Cooperation Zone offers a preferential 15% Complementary Tax rate for qualifying activities on Hengqin Island, adjacent to Macao.

Deep-dive: see small business tax in Macao SAR for Group A vs Group B comparison.

What about indirect taxes? No VAT in Macao.

Macao does NOT have VAT, GST, or a general sales tax. This is one of the most distinctive features of the Macao tax system and a major advantage for retail and hospitality businesses.

No VAT simplifies compliance for SMEs and retailers significantly. Combined with the 12% CIT above MOP 600,000 and the 0% band below it, Macao offers among the lowest combined effective tax burdens for resident businesses in Asia.

Deep-dive: see indirect tax in Macao SAR for the Stamp Duty and Tourism Tax rules.

The GGR tax — Macao's most important revenue source

Gross Gaming Revenue (GGR) Tax is the dominant fiscal instrument in Macao. It applies to the six casino concessionaires and operates entirely outside the Complementary Tax and Salaries Tax frameworks.

Concessionaires: Sands China, Galaxy Entertainment, Wynn Macau, Melco Resorts, SJM Holdings, MGM China. The 2002 liberalization ended the SJM monopoly. Gaming revenue peaked at approximately USD 45 billion GGR pre-2020 and reached approximately USD 22 billion in 2024 following post-COVID recovery and the 2022 anti-corruption crackdowns.

How are cryptoassets treated in Macao?

Macao has no specific cryptoasset tax framework. AMCM Circular 014/B/2017 prohibits Macao-licensed financial institutions from involvement in virtual-currency activities. There is no regulated cryptocurrency exchange under Macao financial-services licences.

Deep-dive: see crypto taxation in Macao SAR for how the regulatory grey zone applies to residents.

What is the treaty network?

Macao maintains approximately 10 bilateral tax treaties. The Mainland-Macao Tax Arrangement is the most heavily used and governs cross-border flows between PRC mainland and Macao.

Macao is NOT a signatory to the OECD Multilateral Instrument (MLI). Macao participates in the OECD/G20 BEPS Inclusive Framework as a participating jurisdiction since 2017. The offshore-institutions regime was abolished effective 1 January 2021 following EU non-cooperative-jurisdiction listing pressure.

Deep-dive: see tax treaty relief in Macao SAR for the bilateral rate schedules.

Meet a Macao resident taxpayer

Where does Macao SAR sit in the cohort?

Macao anchors the Chinese SARs and Asian financial centres cohort — alongside Hong Kong SAR and Singapore, with mainland China as the sovereign anchor. The group spans three distinct governance forms: China SAR, independent city-state, and PRC sovereign.

Common pitfalls and traps

Foreigners and inbound businesses trip on these recurring issues when operating in Macao:

Decision flow — do you need a Macao tax pro?

When should you talk to a Macao tax pro?

Some situations fit the standard employer-withholding path. Others require professional support:

• Your employment income exceeds MOP 324,000 and you want to verify the 30% rebate calculation is applied correctly
• You have self-employment or freelance income in Macao alongside employment (Group I Salaries Tax applies)
• You work partly in Hong Kong or mainland China and need cross-border source-attribution analysis
• You own rental property in Macao (Property Tax + Form M/5 individual filing required)
• You operate or invest in the gaming industry (GGR framework applies — entirely separate from general tax)
• Your group has consolidated revenue above EUR 750 million and faces Pillar Two Domestic Top-up Tax from 2025
• You received a DSF audit notice, assessment query, or penalty notice
• You hold a legacy offshore-institutions structure and need a migration path post-2021 closure
• You are a US person resident in Macao and need to reconcile US worldwide reporting with the Macao territorial framework

You can find vetted Macao SAR practitioners through the directory below.

This page is general information. It is not personal guidance for your specific situation. Tax rules change. Always verify current figures with DSF at dsf.gov.mo or with a licensed Macao practitioner before filing.