Target Groups and Application Eligibility:
Profits Tax Group A taxpayers who cease temporarily or permanently their business.
Application Approach:
In person.
Required Documents:
- 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). - Depreciation and Amortization Schedule form M/3.
- Table of disposal and write-off of tangible and intangible Assets form M/3A.
- Provisions Movement Schedule form M/4.
- Trial balance before and after adjustments for rectification (progressive balances of the general ledger) and the final accounts.
- 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.
- 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.
- Supporting documents of bad debts.
- 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. - Photocopy of latest Business Registration levy notice M/8.
- Name List of the Employee and Casual Worker form M3/M4.
Payment Instructions:
- 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.
- 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.
- Fines may be reduced by half of the specified amount, if taxpayer voluntarily reveals his transgression.
Time Needed:
Submission period:
Within 30 days counting from the date of cessation of activities.
Quality Criteria:
Refer the Performance Pledge of the Financial Services Bureau.
Remarks:
- Taxpayers should request the settlement of Profits Tax.
- The tax should be paid in full within the period stated in the demand note.
- 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.
Legislations Website:
- Law No. 21/78/M, Official Gazette No. 36/1978, published on: 9/9/1978
- Directive No. 12/80, Official Gazette No. 10/1980, published on: 8/3/1980
- Directive No. 49/80, Official Gazette No. 31/1980, published on: 2/8/1980
- Law No. 15/96/M, Official Gazette No. 33/1996, published on: 12/8/1996
- Directive No. 59/GM/97, Official Gazette No. 38/1997, published on: 22/9/1997
- Law No. 12/2003, Official Gazette No. 32/2003, published on: 11/8/2003
- Chief Executive Order No. 11/2004, Official Gazette No. 17/2004, published on: 28/4/2004
- Law No. 4/2005, Official Gazette No. 29/2005, published on: 18/7/2005
- Chief Executive Directive No. 374/2006, Official Gazette No. 52/2006, published on: 26/12/2006
Taxation
Tax