Industrial
tax is levied in accordance with the Law No.15/77/M of 31st
December 1977 ‘Regulations of Industrial Tax”. Few provisions
contained therein have been amended by subsequently implemented
laws. The tax is to be chargeable based on the number and
type of the industrial or commercial activities carried on
by individuals and corporations in the Territory. Tax is levied
on yearly basis with fixed sums corresponding to each type
of the activities. The Regulations set out that individuals
or corporations are required to apply to the Macau Finance
Service Bureau for tax registration of newly commencing industrial
or commercial activities in Macau. The taxpayer may only be
allowed to commence the operations of a particular activity
after registered with the tax authority and settled the initial
industrial tax payment. Thereafter, the taxpayer is taxed
on each registered activity with the authority for each year.
Industrial tax is required to be remitted to the Macau Finance
Service Bureau generally between February and March each year.
In view of the above, the industrial tax in Macau embodies
the features of annual business registration and tax registration.
The industrial and commercial activities defined under the
Regulations exclude the business activities carried out by
sole-proprietors which are subject to professional tax provisions.
Industrial tax
is levied in accordance with fixed tax sums specified in the
activities schedule annexed to the Regulations. There are
totally 363 different types of activities classified in the
schedule ranging from the minimum tax sum of MOP150 to the
maximum of MOP80,000. Most activities are taxed the sum of
MOP300 annually.
Tax exemptions
and relief are also available to certain organisations, such
as the government departments and their associated organisations,
charitable institutions, religious organisations, non profit-making
educational institutes and public services corporations, etc.
In addition, the taxpayers on outlying islands are entitled
to a 50% reduction of the industrial tax. In accordance with
various tax incentive schemes by Macau government to the industrial
and tourism sectors, some qualified taxpayers may apply for
exemption from industrial tax for a given period agreed by
the authorities.
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