The standard complementary tax (corporate income tax) rate for companies is 12% on taxable income exceeding MOP 600,000. The first MOP 600,000 of taxable income is exempt from complementary tax.
Effective from 1 January 2019, financial leasing companies are subject to a reduced complementary tax rate of 5%.
Capital gains derived from sale of assets aresubject to tax at same rate as ordinary income i.e. at 12%.
Companies eligible for tax incentives are eligible for relief from complementary tax (see Sec. 10.).
Special Gaming Tax
The Macau gaming industry (casinos) is regulated by the Gaming Inspection and Coordination Bureau (Direcção de Inspecção e Coordenação de Jogos) of the Macau Special Adminstrative Region. The gaming concessionaires authorised to carry on gaming operations in Macau are exempt from corporate income tax, however, a special gaming tax is levied at 35% of gross gaming revenue. In addition, authorised gaming concessionaires are also subject to the following levies:
- A contribution of 1.6% of gross gaming revenue to the Macau Foundation;
- A contribution of 2.4% (1.4% in certain cases) of gross gaming revenue for urban development, tourism promotion and social security; and
- A 5% tax on commissions paid to gaming promoters.
Alternate Minimum Tax
There is no minimum tax.