The Secretary for Economy and Finance, Lionel Leong Vai Tac, met with the Deputy Administrator of the State Administration of Taxation, Wang Qinfeng, in Beijing, according to a press release from the Secretary’s office. The two parties signed a memorandum revising the Arrangement between Mainland China and the Macau Special Administrative Region on the Avoidance of Double Taxation and Prevention of Fiscal Evasion with Respect to Taxes on Income. There are two clauses that were revised, the first of which is to lower the taxation on aircraft and the ship leasing business to five per cent from seven per cent. The second revision is to enhance tackling tax evasion on dividends, interest, royalties and other capital gains. Lionel Leong indicated that the updates would better guarantee the fairness on taxation for residents both from the Macau SAR and Mainland China, as well as creating a better business environment and enhance transparency on taxation in order to tackle tax evasion. The Arrangement, first signed in 2003, was previously revised in 2009 and 2011.
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