Macau (MNA) – The revision of Mainland income tax law will not be likely to affect Macau residents working in China, according to China Minister of Finance Liu Kun.
During Secretary of Economy and Finance Lionel Leong Vai Tac’s visit to Beijing on Wednesday, China’s finance minister asserted that changes made to the income tax law by the Central Government will not affect Macau residents working in the region, as residents of Macau, Taiwan and Hong Kong will be given preferential treatment.
On August 31, the Central Government passed the “Seventh Amendment to the Law on the Revision of the Individual Income Tax of the People’s Republic of China”, which defines individuals who live for a total of 183 days on the Mainland as ‘residents’ regardless of their country of origin, subjecting income earned within China to income tax.
Previously, tax residents were defined as those who stayed in Mainland China for 365 days a year.
The new law states that the minimum threshold for personal income tax exemption will be raised from RMB3,500 (US$505) to RMB5,000 per month.
This amendment has raised concerns about double taxation.
Policies to avoid double taxation in Portuguese-speaking countries should also be observed to promote Macau as a platform between China and lusophone countries, according to Sun Ruibiao, Deputy Director of State Administration of Taxation in Beijing.
