Multinational companies subject to new rules in Macau

21 January 2020

An administrative regulation called “Regulation of registration on the activities of the multinational enterprise group” shall enter into force on Sunday, 26 January in Macau, after the Executive Council recently concluded the discussion of the project, according to official information.

The statement noted that this administrative regulation is a supplementary diploma of Law No. 21/2019 (amendment to the Regulation on Supplementary Income Tax), in order to keep up with recent international standards called “Action 13 of the plan to combat the erosion of the tax base and the transfer of profits.”

Under the regulation, taxpayers who set up companies in the MacauSpecial Administrative Region and meet the requirements of final parent entity of the group of multinational companies, with the total consolidated revenues of the respective group reaching 7 billion patacas (US$875 million), must meet legal obligations, prepare and keep registration documents and files on the activities of the group of companies.

They must also communicate to the Financial Services Bureau (DSF) their financial and tax information by country or tax jurisdiction contained therein, via electronic encryption.

The DSF, in turn, will exchange its information with countries or jurisdictions to which the group belongs, through a mechanism of automatic exchange of information. (macauhub)