Macau discusses tax information exchange

13 April 2017

Foreign citizens with assets and bank accounts in Macau but tax residency in other jurisdictions will be covered by the legal system of information exchange on matters of tax, the bill for which was approved on Tuesday in general by Members of the Legislative Assembly.

 

The bill, which expands the 20/2009 Law on exchange of information on tax matters, now includes two new methods, which are the spontaneous exchange of information and the automatic exchange of information, in addition to the existing one, which provides information on request.

 

The Secretary for Economy and Finance, Leong Vai Tac, said the first involves automatic reporting of information to the respective tax jurisdiction, while the second is designed to meet the criteria on the exchange of information on matters of tax as defined by international organisations and the United States of America.

 

Leong Vai Tac sought to dispel the doubts expressed by Members about the confidentiality of data collected by financial institutions and then communicated to other jurisdictions saying “confidentiality will be ensured.”

 

The secretary also stressed that for Macau tax residents there will be no exchange of information with third jurisdictions, with the law applying only to foreigners who are resident in other jurisdictions.

 

The Director of Financial Services, Iong Kong Leong, said that information will start to be collected from 1 July so that the exchange of information can begin in 2018, particularly with the United States and with other jurisdictions “with whom we have signed an agreement on information exchange.”

 

This law is intended to align the local law with the rules of the Global Forum on Transparency and Exchange of Information of the Organization for Economic Cooperation and Development (OECD). (macauhub)

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