Target Groups and Application Eligibility:

Profits Tax Group A taxpayers who cease temporarily or permanently their business.

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Application Approach:

In person.

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Required Documents:

1. Income declaration form M/1 and annexes A and B.
   A) Profits Tax – Income declaration form M/1 ANNEX A;
   B) Profits Tax – Income declaration form M/1 ANNEX B;
   C) Profits Tax – Income declaration form M/1 ANNEX A (Insurance Sector);
   D) Profits Tax – Income declaration form M/1 ANNEX B (Insurance Sector);
   E) Profits Tax – Income declaration form M/1 ANNEX A (Bank Sector);
   F) Profits Tax – Income declaration form M/1 ANNEX B (Bank Sector).
2. Depreciation and Amortization Schedule form M/3.
3. Table of disposal and write-off of tangible and intangible Assets form M/3A.
4. Provisions Movement Schedule form M/4.
5. Trial balance before and after adjustments for rectification (progressive balances of the general ledger) and the final accounts.
6. Copy of the minutes of the meeting or assembly for the approval of accounts and copy of the report of the supervisory council when legally required.
7. Copies of the consolidated balance sheet and the profit and loss account and the notes to these statements compiled in accordance with the present Macao Accounting Standards.
8. Supporting documents of bad debts.
9. A technical report briefly commenting on the following:
   A) Change in inventory value and the valuation criteria;
   B) General administrative expenses (management remuneration, representation expenses and travelling expenses incurred during operation);
   C) Other information considered useful for the determination of the taxable profits and notes to the balance sheet and profit and loss account.
10. Photocopy of latest Business Registration levy notice M/8.
11. Name List of the Employee and Casual Worker form M3/M4.

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Payment Instructions:

1. Failure to submit, inaccuracy or omissions verified in the declarations – result in a fine of $100 to $10,000 Patacas. If the failure, inaccuracy or omission is deliberate, a fine of $1,000 to $20,000 Patacas will result.
2. In the case of repetition of offence, the fine is doubled. It is considered to be a repetition if a taxpayer has been liable to a fine for an illegal conduct and has committed the same act of infringement within 18 months.
3. Fines may be reduced by half of the specified amount, if taxpayer voluntarily reveals his transgression.

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Time Needed:

Submission period:
Within 30 days counting from the date of cessation of activities.

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Quality Criteria:

Refer the Performance Pledge of the Financial Services Bureau.

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Remarks:

1. Taxpayers should request the settlement of Profits Tax.
2. The tax should be paid in full within the period stated in the demand note.
3. Failure to settle tax in the payment month will result in a levy of interest plus 3% of the tax in default within 60 days grace period. After that period, coercive levy will proceed.

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Legislations Website:

1. Law No. 21/78/M, Official Gazette No. 36/1978, published on: 9/9/1978
2. Directive No. 12/80, Official Gazette No. 10/1980, published on: 8/3/1980
3. Directive No. 49/80, Official Gazette No. 31/1980, published on: 2/8/1980
4. Law No. 15/96/M, Official Gazette No. 33/1996, published on: 12/8/1996
5. Directive No. 59/GM/97, Official Gazette No. 38/1997, published on: 22/9/1997
6. Law No. 12/2003, Official Gazette No. 32/2003, published on: 11/8/2003
7. Chief Executive Order No. 11/2004, Official Gazette No. 17/2004, published on: 28/4/2004
8. Law No. 4/2005, Official Gazette No. 29/2005, published on: 18/7/2005
9. Chief Executive Directive No. 374/2006, Official Gazette No. 52/2006, published on: 26/12/2006

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