Professional Tax (Personal Income Tax)
Employees in Macau are subject to Professional Tax, which is levied on income earned from employment, including wages, bonuses, and allowances.
- Progressive tax rates: Professional Tax is charged at progressive rates ranging from 7% to 12%, after deductions and allowances.
- Tax allowances: Employees can benefit from personal allowances (basic allowance, dependent allowance, etc.), which reduce the taxable base.
- Exemptions: Individuals earning below the annual exemption threshold (currently MOP 144,000) are not required to pay Professional Tax.
Employer Responsibilities
Employers in Macau have specific obligations when it comes to employee taxation:
- Withholding obligation: Employers must withhold Professional Tax from employees’ salaries each month.
- Remittance: The withheld amounts should be paid to the Macau Financial Services Bureau (DSF).
- Annual declaration: Employers must submit an annual declaration of employee income and tax withheld.
Failure to comply with withholding and reporting obligations can lead to penalties.
Social Security Contributions
In addition to Professional Tax, both employers and employees are required to contribute to the Macau Social Security Fund.
- Employer contribution: MOP 60 per local employee per month.
- Employee contribution: MOP 30 per local employee per month.
- Non-resident workers: Employers must pay a higher contribution of MOP 200 per month for each foreign employee (employees do not contribute).
These contributions cover benefits such as pensions, maternity allowances, and disability support.
Double Taxation Treaties
Macau has signed limited double taxation agreements (DTAs), mainly with Portuguese-speaking countries. Businesses should check whether a DTA applies to avoid double taxation of income earned in Macau.
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Employment tax in Macau is relatively straightforward, with a progressive Professional Tax and fixed social security contributions. Employers must ensure timely withholding and reporting to remain compliant.
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Please note that all the information listed below are to be used as a general guideline. For more detailed accounts of Macau employment laws and regulations, please visit the official governmental websites.
Updated on: September 2025
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