Macau has a simple, predictable and low tax system among the world. Tax rate for corporation is extremely low (In year 2014, assessable profit up to MOP 300,000 is tax exempted and assessable profit over that amount is taxed at a flat rate of 12%). “Commercial Entrepreneur” is required to file Complementary Income Tax (also known as profit tax) return every year.

         Complementary Income Taxpayers are divided into two types - Group A and Group B. The difference between the two are as follows:

• Group A taxpayers are companies that have maintained appropriate accounting books and records, with share capital of MOP 1,000,000 and above or average annual taxable profits in the past 3 years of more than MOP 500,000;
• On the other hand, Group B taxpayers are those who do not meet the criteria mentioned above. Any first time taxpayers will automatically be assigned to Group B, unless that fall within the criteria mentioned above or they apply to be reclassified as Group A taxpayers;
• Group A taxpayers are assessed based on tax returns submitted; and
• Group B taxpayers are assessed by the Macau Finance Bureau (DSF) on a deemed profit basis. The assessable profits of a Group B taxpayer are assessed with reference to various factors (for example, the average profit margin of the type of goods and services, or the industrial average of the gross profit margin as submitted by other taxpayers in the same industry).

         The filling period for returns for Group A taxpayers is from April to June each year while the filing period for returns for Group B taxpayers is from February to March each year.

         We understand our client may find it frustrating every year when tax season arrived. Absent of or inaccuracy in the declaration of tax return may result in a penalty ranging from MOP 100 to MOP 10,000. In order to avoid omission on tax return, we are here to provide the below tax services:

• Assists in the preparation and filing of Group B taxpayers return; and
• Arrangement of Macau registered CPA to certified Group A taxpayer return.

Moreover, we may also provide our client with the below services if he/she receives tax query from the DSF:

• Written response to the DSF in timely manner; and
• Tax declaration and litigation service.

If you are interested in any of the above services, please do not hesitate to <Contact us> and find out more about our service fee and other information.