The Macau Special Administrative Region (MSAR) and China’s State Administration of Taxation in Beijing signed an additional protocol to the agreement to avoid double taxation and prevent tax evasion, officials said in Macau.
The Additional Protocol, the third, according to the statement released by the Office of the Secretary for Economy and Finance includes reducing the tax burden for the payment of “royalties” on leasing of aircraft and ships, whose rate decreased from 7 per cent to 5 per cent.
“This change helps reduce the fiscal costs of Macau residents in mainland China, raising the competitiveness of the Macau SAR and attracting foreign investment into the territory, which will play a very positive role in promoting local leasing activities,” the statement said.
The protocol adds measures against tax evasion on dividends, interest, royalties and equity income, which are being introduced due to growing concern from the international community about violation of tax treaties, and seeking to strengthen bilateral cooperation on tax evasion.
The 1st and 2nd protocols regarding the “Agreement between the Mainland and the Macau Special Administrative Region (MSAR) for the Avoidance of Double Taxation and Prevention of Fiscal Evasion in Relation to Income Taxes” were signed in 2009 and 2011, respectively.
(Macau News / Macauhub)