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8.2.2. Withholding Taxes

There is generally no withholding tax on payments to non-residents. See, however, the note for dividends below.

Dividend

There is no withholding tax on dividends paid to non-residents.

Ordinarily, dividends paid out are tax deductible to the distributing entity for complementary tax purposes. The distributing company is required to provide the Finance Bureau with identity and Tax identification Number (TIN) of the recipient. Where the recipient is a non-resident without a Macau TIN, the Finance Bureau may request additional detailed information in order to verify whether or not the recipient carries out any business activities constitutive of a nexus with Macau. In situations where it considers that the information supplied is insufficient for a proper determination, the Finance Bureau may disallow the deduction of the dividend at the level of the distributing Macau entity. Alternatively, the Macau distributing entity may withhold profits tax at 12% on the dividends paid to the non-resident recipient in order to secure a deduction. Interest

There is no withholding tax on interest paid to non-residents.

The payer is required to submit detailed information regarding the non-resident to the tax authorities, in order for the latter to ascertain that the payment is not connected to a business conducted by the non-resident recipient in Macau. The tax authorities are empowered to disallow the deduction of the payment for the complementary tax purposes of the payer if not satisfied by the information supplied. However, in order to secure the deductibility of the payment at its level, the payer has the option to withhold tax at the rate of 12% on the gross amount paid.

Royalty Copyright

There is no withholding tax on royalties paid to non-residents.

The payer is required to submit detailed information regarding the non-resident to the tax authorities, in order for the latter to ascertain that the payment is not connected to a business conducted by the non-resident recipient in Macau. The tax authorities are empowered to disallow the deduction of the payment for the complementary tax purposes of the payer if not satisfied by the information supplied. However, in order to secure the deductibility of the payment at its level, the payer has the option to withhold tax at the rate of 12% on the gross amount paid.

Royalty Patent

There is no withholding tax on royalties paid to non-residents.

The payer is required to submit detailed information regarding the non-resident to the tax authorities, in order for the latter to ascertain that the payment is not connected to a business conducted by the non-resident recipient in Macau. The tax authorities are empowered to disallow the deduction of the payment for the complementary tax purposes of the payer if not satisfied by the information supplied. However, in order to secure the deductibility of the payment at its level, the payer has the option to withhold tax at the rate of 12% on the gross amount paid.

Royalty Trademark

There is no withholding tax on royalties paid to non-residents.

The payer is required to submit detailed information regarding the non-resident to the tax authorities, in order for the latter to ascertain that the payment is not connected to a business conducted by the non-resident recipient in Macau. The tax authorities are empowered to disallow the deduction of the payment for the complementary tax purposes of the payer if not satisfied by the information supplied. However, in order to secure the deductibility of the payment at its level, the payer has the option to withhold tax at the rate of 12% on the gross amount paid.

Service Management

There is no withholding tax on management fees paid to non-residents.

The payer is required to submit detailed information regarding the non-resident to the tax authorities, in order for the latter to ascertain that the payment is not connected to a business conducted by the non-resident recipient in Macau. The tax authorities are empowered to disallow the deduction of the payment for the complementary tax purposes of the payer if not satisfied by the information supplied. However, in order to secure the deductibility of the payment at its level, the payer has the option to withhold tax at the rate of 12% on the gross amount paid.

Service Technical

There is no withholding tax on technical fees paid to non-residents.

The payer is required to submit detailed information regarding the non-resident to the tax authorities, in order for the latter to ascertain that the payment is not connected to a business conducted by the non-resident recipient in Macau. The tax authorities are empowered to disallow the deduction of the payment for the complementary tax purposes of the payer if not satisfied by the information supplied. However, in order to secure the deductibility of the payment at its level, the payer has the option to withhold tax at the rate of 12% on the gross amount paid.

Others

NA

Below is a discussion of domestic withholding tax rules for most of the common cross border payments.

Capital Gains
12%
Dividends
0%
Interest
0%
Royalty Copyright
0%
Royalty Patent
0%
Royalty Trademark
0%
Sales
0%
Service Management
0%
Service Technical
0%

* Rates are current as of 29 January 2023