Transactions from Portugal to local offshores fall by 45pct y-on-y in 2019

The amount transferred from Portugal to offshores in Macau has decreased by 45 per cent year-on-year in 2019 to about 271.7 million euros (MOP2.4 billion), data published by the Portuguese Tributary and Customs Authority reveals.

Most of those transfers were either cash management transfers (136.2 million euros), loans (40.4 million euros), trade settlement payments (30.1 million euros).

Pressured by the Organisation for Economic Co-operation and Development to improve taxation standards local authorities in 2018 approved legislation determining that from January, 2021 there can be no offshore companies in Macau, with existing companies having to decide if they close doors or change to onshore companies.

As of the beginning of this year, there were still about 355 offshore companies operating in Macau.

According to Portuguese authorities, transfers from Portugal to ‘offshores’ and territories with special taxations legislation in 2019 dropped nearly 6 billion euros, compared to 8.9 billion registered in 2018.

Last year, a total of 11,291 entities transferred money from Portugal to tax havens, with more than 6,500 being companies or legal entities and the rest from individuals.

Switzerland is the territory that received most transfers from Portugal, followed by Hong Kong and the United Arab Emirates.