Tax In Macau

A Contractor’s Guide to Taxes :

One of the most consistently challenging aspects of contracting in Macau is complying with the country’s tax system. As well as paying tax in Macau, you might also still be eligible to pay some tax in your home country, and understanding the legislation behind this can be a challenge.

How do I calculate my taxable income:

If you’re working in Macau under a permanent contract, many employers will handle your tax under the PAYE (pay-as-you-earn) system. This means that they calculate and process your taxes in Macau for you and then send you a net wage. Your income tax, public health insurance, social security and other deductions will all be covered by this payment. This is the easiest way to handle your income tax in Macau, but contractors may not be offered this service because of their short stay with each employer.

Anybody who can’t pay their tax in Macau through PAYE is left with the prospect doing everything themselves.

Do you know much about Macanese Tax Law? Does Macau have a tax treaty with your home country? You will need to find out or find someone who can help! Income tax in Macau can range from 7 to 12 percent, and you need to be sure you are placed in the correct tax brackets.

Tax Calculator:

If you are a contractor and want a calculation on your tax and net retention in Macau, we can supply it to you free of charge.

Using an Umbrella Company for Income Tax :

Contractors in Macau are faced with masses of paperwork and numerous wasted hours filing a tax return unless they find an alternative option. A Macanese umbrella company can act as your employer during your stay in the country whilst still allowing you the freedom of a contractor. The only difference is that you submit your timesheets to them; they’ll calculate and pay your taxes as you earn, and then you receive a net wage (as well as documentation for your records).

The companies are experts in Macanese taxation, and they’ll ensure that you keep the largest proportion of your earnings whilst complying with local laws. They can deal with any issues with the Macanese tax office or tax department directly including processing your tax refund if you are eligible.

How We Can Help You with Tax:

We work with numerous umbrella companies in Macau, many of whom are experts in tax and immigration laws. If you have any questions about tax in Macau, we’ll get the answers from them directly so you can rest assured you’ll be getting accurate information. We have comprehensive knowledge of the different services they provide, and can help you find the right company to handle your income tax. We help oil and gas workers, software developers, IT project managers, testers, business analysts and telecommunications contractors get tax efficient payments and sponsorship for their Macanese work permit.

Our advice is 100 percent free, and comes with no obligations. You will be paying taxes in Macau but without the overhead of directly dealing with the Macanese tax authorities. Get in touch with us today for some reliable advice on tax in Macau!

When Do You Need to Lodge Your Tax Return?:
End of March (in the year following the income tax year)
Tax Filing Deadline :
End of March (in the year following the income tax year)
Can you file it online? :
Yes, https://eserv.dsf.gov.mo/?lang=zh
Currency:
Macanese Pataca (MOP)
Tax-free Threshold in:
MOP144,000
Grossed Income:
First MOP144,000
Tax Rate:
0%
Grossed Income:
Next MOP20,000
Tax Rate:
7%
Grossed Income:
Next MOP20,000
Tax Rate:
8%
Grossed Income:
Next MOP40,000
Tax Rate:
9%
Grossed Income:
Next MOP80,000
Tax Rate:
10%
Grossed Income:
Next MOP120,000
Tax Rate:
11%
Grossed Income:
Remainder
Tax Rate:
12%
How to File Taxes in:

Your employer is required to file taxes on your behalf in Macau.

Notes:

The tax rates above apply to the income of both residents and non-residents.

Non-Residents without Work Permits: The higher of 5% and the tax rate specified in the table above is levied on the employment income of non-residents without a work permit, and withheld at source.

Does the 183 day rule apply in:

No

When do you become a tax resident in:

There is no residency for tax purposes in Macau.

Am I taxed on my global income in:

Individuals are taxed on their Macau-source income only i.e. income arising in or derived from Macau.

Client comment

  • Great advice and excellent service on contracting and immigration solutions in the UK. I would highly recommend Tim and the team to assist you with accurate, clear and concise contracting advice in the UK or any other country for that matter.

    Prishen Pillay Shell International Trading & Shipping / Global DBA Operations Lead
  • I utilized PEO services with Contractor Taxation & have found the services invaluable. We had to quickly establish a presence in China to meet a perceived large market, knowing how difficult it could be setting up a complete operation there. CT helped us immensely to navigate these waters and establish this beachhead without a lot of the normal distractions associated w/opening a full operation. This allowed us to focus on our client’s expectations and keep us moving forward in the market.

    John Zimmer Charles River Development / Vice-President, Finance