Macau may change corporate tax rate

The Macau Special Administrative Region is set to revise a low corporate tax. The reason for this decision was a decrease in the expected income from gambling, which brought more than 75% of annual income.

Of the IMF recommendations for Macau, it says that the country has faced two serious problems. According to international experts, these are tax revenues from games that will constantly decline, since gaming revenues should not return to previous highs. And the second reason will be the cost of pensions will continue to grow due to the demographic crisis.

"Under these conditions, the budget surplus will be moderate in the medium term," the IMF said.

The International Monetary Fund welcomed the country's decision to comply with the OECD standards of transparency and the information exchange program from 2018, but it remains questionable whether the country is ready to abandon gaming tax revenues. Macau is also advised to abandon a number of local revenues, reducing them to the permissible minimum value.

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