Macao | Offshore company law will be abolished to comply with OECD standards
Macao (MNA) – The government of the Macao SAR has proposed the abolition of a current offshore law in order to comply with Organization for Economic Co-operation and Development (OECD) standards regarding the treatment of offshore companies under of Macao SAR law.
A proposal for the repeal of Legislative Decree 58/99 / M has been submitted to the Legislative Assembly (AL).
In the context of the fight against cross-border tax evasion, this deletion would mean that current companies operating under the law detailed above will not be allowed to manage offshore institutions benefiting from a special tax exemption status, thus as an exemption from stamp duty, until June. 2021.
The exemption means that the companies concerned will not be able to benefit from tax advantages on the additional taxes, even in the event that the offshore institutions change their registered business name and the object of their registered activity within 90 days of expiration. of their offshore activity license.
The cut will affect around 360 companies with a total workforce of 1,700, which government spokesman Leong Vai Tac said is unlikely to be [overly] affected due to the planned transition period.
Macau joined the OECD framework on Base Erosion and Profit Shifting (BEPS) in November 2016.
In addition, Macau was removed from the list of tax havens by the European Union (EU) in January 2018 and announced that it would automatically share tax information with the EU from September 1.