Macau (MNA) – The Office of the Secretary for Economy and Finance, Lionel Leong Vai Tac, has announced this Tuesday that Macau authorities have been authorised by the Chinese central government to comply with the Convention on Mutual Administrative Assistance in Tax Matters (MAC) regulations devised by the Organisation for Economic Co-operation and Development (OECD) starting from September 1, 2018.
‘This will allow not only to establish a good legal basis for the Macau SAR to comply with this international pledge to exchange tax information, but also to fully demonstrate to the international community the Macau SAR commitment to actively participate in international fiscal cooperation,’ the Office note stated.
In order to adhere to the international convention which enables participating jurisdictions to exchange tax information automatically local authorities have signed the Multilateral Competent Authority Agreement on Automatic Exchange of Financial Account Information (MCAA).
Upon signing this agreement, Macau will automatically share tax information with other signing jurisdictions, with the latest list of signatories including 102 countries and regions.
Local authorities have also been authorised by the Chinese government to negotiate and sign tax agreements with Portuguese-speaking countries and neighbouring countries and regions.
The Office of the Secretary for Economy considered that by joining these agreements the city effectively raises the level of its compliance to international tax co-operation standards and maintains a ‘good international image’ in the areas of tax practice and tax co-operation.
Current signatories of the agreement include Portugal, China and Hong Kong with the latter two having promised to make the first information exchange by September 2018.
The Macau authorities had pledged to improve the legal regime of the offshore business sector to enhance taxation and give administrative steps to facilitate financial information exchanges, after the European Union decided to remove the city from a blacklist of non-co-operative tax jurisdictions.