The Legislative Assembly of Macau on Wednesday approved a proposal for a law to regulate the creation and operation of financial leasing companies and subsidiaries for the purpose of leasing.
The members of the assembly also approved another proposal for a law establishing the tax benefit scheme for leasing companies.
The two laws, which were generally approved at a plenary session in May 2018, will come into force on the business day immediately following publication in the Official Gazette.
Economy and Finance Secretary Leong Vai Tac and Chan Sau San Monetary Authority President Chan Sau San attended the plenary session on Wednesday in which the two bills were voted on article by article in a final reading.
The new law stipulates that leasing companies must have a minimum capital of 10 million patacas at the time of their incorporation and when in operation, and that capital must be fully paid up in cash at the time of their incorporation.
The previous law, approved in 1994 during the Portuguese administration of the territory, stipulated a minimum capital of 30 million patacas, now reduced to one-third of that value.
Under the new law, leasing companies are defined as a financial institution, unlike previous legislation that defined them as credit companies. (Macauhub)