Macau employees in Hengqin will enjoy the same tax rate as in the SAR

*By Therese Tu

Macao residents working in the Guangdong-Macao Deep Cooperation Zone in Hengqin will enjoy the same personal income tax rates as Macao’s corporate tax rates, the Guangdong Provincial Office of the National Tax Office.

Personal income tax rates in Macau are progressive and cumulative up to a maximum rate of 12%.

The first MOP 144,000 of an individual’s income is tax exempt, while income above MOP 144,000 is taxed at six levels ranging from 7% to 12%, and income above MOP 424,000 is taxed at 12%.

Meanwhile, personal income tax for domestic and foreign high-end personnel working in the Guangdong-Macao Deep Cooperation Zone in Hengqin should not exceed 15 percent of total income, the tax bureau said. from Guangdong.

A list of high-end personnel eligible for tax relief with more details on the arrangement will be offered by Macau and Guangdong and reviewed by the Greater Bay Area Development and Reform Commission.

Personal income tax in China is administered under a progressive tax system with tax rates of 3% to 45%, and some municipal governments in Guangdong offer local tax incentives for foreign talent.

Hainan Province – China’s largest free trade zone in the far south – also announced in 2021 a 15% cap on the personal income tax rate for high-end talent.

The implementation of the new preferential personal income tax policy in Hengqin aims to “create a good working environment” similar to the SAR, and “will benefit nearly 10,000 domestic and foreign talents as well as Macau residents working in the cooperation zone,” according to the press release.

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