The Legislative Assembly (AL) yesterday passed a government-initiated bill establishing the Macau Special Administrative Region’s (MSAR) first Tax Code, aiming to integrate, aggregate, harmonise and unify the different rules listed in the various current pieces of legislation on taxation.
The Tax Code aims to clearly define the rights and obligations in tax-related legal relationships, establishing the principles and procedures with which tax administrative procedures, tax-related judicial proceedings and tax enforcement must comply.
The code, which will take effect on January 1, 2026 in general but with certain provisions to come into force earlier than that, aims to better ensure the full collection of government tax revenues while fully protecting taxpayers’ rights and legitimate interests.
The bill’s outline was passed during a plenary session of the legislature in November 2021, after which the bill was reviewed by its 3rd Standing Committee, before it was resubmitted to yesterday’s plenary session, which Secretary for Economy and Finance attended, when it was voted on article-by-article in its second and final reading.
The new legislation aims to modernise Macau’s taxation system, such as by enhancing its compliance with international taxation standards, with the objective of enabling Macau to better comply with international tax obligations, which would help attracting more business investments to Macau from elsewhere.
Speaking during yesterday’s plenary session, legislator Vong Hin Fai, who heads the legislature’s 3rd Standing Committee, noted that the new legislation extensively covers legal matters concerning Macau’s taxation system.
Vong underlined that the Tax Code is a kind of framework legislation that will extensively regulate the city’s various tax-related legal matters, including tax-related administrative procedures, tax-related judicial proceedings and tax enforcement systems.
Vong, a lawyer by profession, noted that the new legislation’s final version comprises 29 articles, attaching the new Tax Code with 312 articles.
Vong also described the Tax Code as being of great significance to Macau’s legal system.
According to Vong, the new legislation also extensively amends the city’s various current pieces of legislation on taxation covering taxes such as salaries tax, net profit tax, stamp duty, vehicle tax, tourism tax, and consumption tax, with the objective of enabling them to comply with the Tax Code.
Lawmakers pass 2025 budget bill
Meanwhile, yesterday’s plenary session also passed the government’s 2025 budget bill, the second one with a budget surplus after Macau’s post-pandemic economic recovery.
According to its 2025 budget bill, the government expects its revenues to reach 121.09 billion patacas next year, while its expenditure next year is expected to amount to 113.38 billion patacas.
Consequently, according to the bill, the government expects to enjoy a budget surplus of 7.7 billion patacas next year.
Secretary for Economy and Finance Lei Wai Nong bows to lawmakers in the legislature’s hemicycle yesterday expressing his gratitude for their “strong support” for government-initiated legislation concerning his portfolio over the past five years. – Photo: William Chan
