Complementary Income Tax (Profits Tax) is levied on all income derived from commercial activities in Macao territory by natural persons and legal persons.
Complementary Income Tax (Profits Tax) is computed at progressive rates from 3% to 12%.
Taxpayers subject to Complementary Income Tax (Profits Tax) are classified into two groups, group A and group B.
Group A taxpayers:
1)Public Company.
2)Company capital not less than MOP1,000,000.
3)Taxable income on average was more than MOP1,000,000 in the past three years.
4)Those who choose to be a Group A taxpayer.
Group B taxpayers:
These refer to business enterprises, which do not fall into Group A.
The major different of the Group is that Group A Taxpayer is required to have financial statement being audited by Certified Accountant or Certified Public Accountant – this group is being taxed on their actual audited profits. On the other hand, Group B Taxpayer is being taxed on the estimated profit which is determined by the Financial Services Bureau of Macao.
Declaration and Payments:
All Taxpayers are required to submit Tax Declaration Form to Financial Services Bureau:
Group A Taxpayer is to be submitted within April to June.
Group B Taxpayer is to be submitted within February to March.
Payment of tax shall be made by two equal installments normally in September and November. However, if the amount is not greater than MOP3,000, payment shall be made by one installment, normally in September
Reference:
Law Nº 21/78/M：Complementary Income Tax (Profits Tax)
Macao SAR Government- Printing Bureau (Official Website):https://bo.io.gov.mo/bo/i/78/36/lei21_cn.asp