|
| |
| |
Other Macao taxes |
 |
|
|
|
|
|
|
| Professional
tax |
Macao professional tax is imposed under the Law No.2/78/M
of 25th February 1978, ‘Regulations of Professional Tax”.
Certain parts of the provisions have been amended from time
to time since the implementation of the Regulations.
Individuals subject
to professional tax are classified into two groups; group
1 taxpayers are those who are employed by others and receiving
employment income, and group 2 taxpayers are those who generate
income from carrying out business or providing services in
connection with the professions or activities specified in
the annexed schedule of the Regulations. Employers of the
group 1 taxpayers are required to deduct at source the professional
tax in respect of salaries or wages paying to employees. Professional
tax collected by employers is payable to the tax authority
on a quarterly basis. Further, these employers are also obliged
to lodge with the tax authority by end of February each year
the professional tax returns in respect of payroll and deducted
tax details of employees of the preceding year. Group 2 taxpayers
are required to submit annually their personal tax returns
within the prescribed period. For those taxpayers of this
group without appropriate accounting books and records, the
returns in respect of the preceding year should be filed by
the end of February each year. Group 2 taxpayers with appropriate
accounting books and records should submit to the tax authority
their returns relating to their activities in preceding year
not later than 15 April of each year.
All personal
earnings including salaries, wages, other remuneration or
rewards whether in cash or in kind, regular or occasional,
periodical or casual, must be included in assessable income
for tax purpose.
Under the Regulations
certain allowances or subsidies received by taxpayers, such
as medical allowances with supporting documents, family subsidies
and pension fund, and so on, may be excluded from the charge
of professional tax. Group 2 taxpayers can claim deductions
on those inevitable expenditure incurred in carrying on the
activities for the purpose of gaining assessable income, such
as rental, utilities, communication and insurance expenses,
etc.
Professional
Tax rates are progressive up to a maximum rate of 12%. The
Professional Tax
rates (effective from 1 July 2003) are as follows:
|
Annual
assessable income (MOP)
|
Tax
rate |
|
Nil |
|
7% |
|
8% |
|
9% |
|
10% |
|
11% |
|
12% |
|
|
Assessable income is arrived at after deducting non-taxable
income (generally including pension, medical expenses, family
allowances, housing allowances, etc. with limits applicable
to public servants), and a 25% disount of net employment income
after the non-taxable income deduction. A personal allowance
of MOP95,000 is currently available to each employed individual.
For an individual aged over 65 or proved to be disable with
physical incapacities over 60%, the personal allowance will
be MOP135,000.
|
|
 |
|
