2005 Investment Climate Statement -- Macau, February 2005

U.S. Department of State's 2005 INVESTMENT CLIMATE STATEMENT -- for MACAU The Government hopes to diversify Macau's economy by attracting foreign investment and is committed to maintaining an investor-friendly environment. Corporate taxes are low. The tax rate is 15 percent for a company's net profits greater than USD 37,500 (300,000 patacas). For net profits less than USD 37,500, the tax ranges from 2 percent -15 percent. In his November 2004 annual policy address, Chief Executive Edmund Ho said that his administration planned to submit a proposal to the Legislative Assembly in 2005 to lower the rate of corporate income tax so that it is closer to the personal tax rate. The top personal tax rate is 12 percent, and a 12-13 percent corporate tax rate would be one of the lowest in the world. The Government is seeking to develop Macau into a commercial and trade service provider for China, particularly the West Guangdong region. It also aims to facilitate trade and economic cooperation between China and Portuguese-speaking countries. In 2002, the Government ended a long-standing gaming monopoly when it awarded two gaming concessions to consortia with U.S. interests. This opening is significantly boosting the U.S. business profile and investment in Macau. In addition, a third U.S. gaming concern plans to team up with the former monopolist to build a large Las Vegas-style casino. more here: