What tax relief and welfare measures can Macao residents and businesses expect to continue enjoying in 2025?

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Each permanent resident is expected to continue to receive 10,000 patacas, while eligible employers will likely be offered subsidies covering paid maternity leave for local female employees.

Macao’s Chief Executive Ho Iat Seng has made his budget recommendations for 2025, suggesting the continuation of a number of tax relief measures and subsidies, as well as the Wealth Partaking Scheme, for Macao residents and businesses.

Ho presented a budget proposal for 2025 at a plenary session of the Legislative Assembly on 19 November 2024, adding that the recommendations regarding the budget proposal for next year were formed after discussion with, and agreement from, the sixth-term Chief Executive, Sam Hou Fai.

The measures and tax cuts, waivers and rebates, are expected to have a net negative impact on Government tax revenue amounting to 4.833bn patacas.

Some measures suggested to be continued in 2025 include:

• Offering 10,000 patacas to each permanent resident, and 6,000 patacas to each non-permanent resident;
• Injecting a 10,000-pataca initial allowance from the Government into the personal Social Security Fund account of every eligible Macao permanent resident, and continuing the initiative of injecting an additional 7,000 patacas into the personal Social Security Fund account of every eligible Macao permanent resident;
• Implementing a 30% deduction to the personal income tax payable, with the basic annual allowance set at 144,000 patacas. The personal income tax allowance for employees over 65 years and for eligible employees with disabilities would be set at 198,000 patacas;
• Rebating 60% of personal income tax payable by each Macao resident, subject to a ceiling of 14,000 patacas;
• Offering subsidies for eligible employers, covering a maximum of 14 days of basic wages to enable paid maternity leave for local female employees;
• Profit tax allowance to remain at 600,000 patacas; additional deduction of tax to support expenses related with research and development projects; and waiving profit tax for local enterprises on revenue gained from Portuguese-speaking countries;
• Waiving business tax, hawker-licence fees, wet-market stall rents, inspection and quarantine fees for live food, the stamp duty on life insurance and other forms of insurance, and the stamp duty on bank services;
• Waiving signboard taxes for businesses (excluding tobacco advertisements), and exempting restaurants from tourism tax.

Ho said the Secretary for Economy and Finance, Lei Wai Nong, will represent the Macao SAR Government in explaining to the Legislative Assembly the budget proposal for 2025. The actual policy address for 2025 will be presented by the team of the sixth-term Government, which will take office on 20 December.