The income earned or generated by Macau companies in Portuguese-speaking countries will be exempt from payment of supplementary income tax in 2019, the Macau Chief Executive said on Thursday.
Chui Sai On, presenting the Report of the Governance Action Lines for the 2019 financial year in the Legislative Assembly, also said that in order to continue to promote the development of financial activities with their own characteristics, the supplementary tax exemption will also be granted on income from investment in bonds issued by authorities from mainland China and from state-owned enterprises traded in Macau, as well as exemption from stamp duty on the issuance and acquisition of these bonds.
Listing tax benefits for the coming year, the Chief Executive said that to encourage Macau companies to develop research and development projects, along with the implementation of the development plan of the Guangdong-Hong Kong-Macau Greater Bay, the taxable amount subject to the supplementary income tax of these companies will benefit from a deduction of 300% for the first 3 million patacas of “qualified research and development expenses” and 200% for the remaining amount, with a maximum deduction of 15 million patacas.
In order to promote supply in the real estate leasing market, a reduction of 8.0% in the urban property tax of leased buildings is also planned, with the rate remaining at 6.0% for non-leased buildings.
Chui also mentioned raising the value of annual income exempt from business tax to 198,000 patacas for people aged over 65 and disabled people, “in order to enhance their employability.”
The report, entitled “Harnessing Opportunities, Balanced Development,” has four main objectives, namely focusing on improving the quality of life of the population, progress in urban construction, economic development and commitment to good governance. (macauhub)