FAQs of Macau Company Incorporation

Q:

How to classify a Macau company into Group A or Group B of Complementary Income Tax?

A:

The classification criteria of Group A are as follows:
- The registered capital of the company is MOP 10,000,000 or above, or
- The company shall complete Form M1 (Simplified Version) and submit its financial statements each year. The Financial Services Bureau will assess the average net profit of the company in the past 3 years and decide whether to classify the company into Group A or not. The Bureau will inform a "Group A" company by letter that it is required to complete Form M1 (Full Version) and have it re-examined and signed by Macau CPA when filing tax returns every year.
The classification criteria of Group B are as follows:
- Companies that do not meet the criteria of Group A; or
- Non-operating companies

Q:

How to pay the Complementary Income Tax?

A:

Taxpayer in Group A shall declare its last year's earnings to the Macau Financial Services Bureau in April to June each year by completing Form M1 (Full Version) and having it re-examined and signed by Macau CPA. (Audit Report is not compulsory, as Form M1 (Full Version) has already included the company's operating income / expenditure and other information, equivalent to the contents of Audit Report. However, you may require to prepare Audit Report as well.)
Taxpayer in Group B shall declare its last year's earnings to the Macau Financial Services Bureau in February to March each year by completing Form M1 (Simplified Version); Financial Statement or Audit Report are not required.

Q:

When and how to apply to become a Professional Tax taxpayer?

A:

For Group I Taxpayer (person serving others), the employer shall submit the Registration From (Form M/2) of Professional Tax completed and signed by the employee and a copy of his or her identity document within 15 days of employment
Group II Taxpayer (freelancer or professional) is required to submit the Declaration of Business Commencement (Form M/1) of Professional Tax before business commencement

Q:

When should the Professional Tax be declared?

A:

Group I Taxpayer (person serving others and receiving remuneration from more than one employers) is required to report last year's remuneration or earnings in Return of Earnings (Form M/5) in January to February of each year
Group II Taxpayer (freelancer or professional) who does not have proper accounting preparation is required to report last year's remuneration or earnings in Return of Earnings (Form M/5) in January to February of each year
Group II Taxpayer (freelancer or professional) who has proper accounting preparation may defer to April 15

Q:: What kinds of Professional Tax shall be declared by employers?
A:: In January to February of each year, no matter having employees or not, employers are required to submit to the Financial Services Bureau the Name Form of Employees or Casual Workers (Form M3/M4) of Professional Tax Group I within the statutory filing period. The remuneration or benefits obtained by each staff member in the previous year shall be included in the form.