If you’re thinking of hiring staff in Macau SAR, it’s important to be aware of the legal framework and tax contributions in order to remain compliant at all times. Macau has its own social security and tax system that differs to mainland China, making it all the more important to collaborate with a local professional when operating in the market.
Understanding payroll in Macau
Here are a number of payroll and tax considerations to bear in mind as an employer or employee in Macau SAR:
Income Tax in Macau
Individuals receiving income from employment in Macau SAR are subject to Macau Professional Tax (MPT). Macau SAR currently has double tax treaties with China, Portugal, Mozambique, Cape Verde and Vietnam for the avoidance of double taxation. Earnings on self-employed income are also subject to professional taxation.
Progressive tax rates range from 7 to 12% with income over MOP 424,000 taxed at 12%.
|Taxable Income (MOP)||Tax rate applied|
|Up to 144,000||0%|
|Over 144,000 – up to 164,000||7%|
|Over 164,000 – up to 184,000||8%|
|Over 184,000 – up to 224,000||9%|
|Over 224,000 – up to 304,000||10%|
|Over 304,000 – up to 424,000||11%|
Social Security Contributions in Macau
Local Employees must be registered with the Macau Social Security Fund. Employers must make monthly contributions of MOP60 and deduct MOP30 from each resident employee’s salary. For non-resident employees, employers are required to make a monthly contribution of MOP200. A recruitment levy of MOP200 per month applies to each foreign employee with a valid work permit/visa in Macau SAR.
What’s included in our Macau payroll solution?
By outsourcing payroll and tax management to us, INS Global essentially becomes your dedicated HR department in Macau, relieving you of the administrative burden involved in global expansion.
We take into account the following:
- Monthly payroll management
- Social security deductions and remittance to the Macau authorities
- Expenses and benefits
- Annual leave management
INS Global: Your payroll provider in Macau
Headquartered in Shanghai and with services covering Macau and the rest of Asia-Pacific, INS Global is Asia’s leading Global PEO and market-entry consulting company. Our services are designed to simplify your international expansion, allowing you to fully focus on your core business. Contact us today to learn more about how we can help you in Macau.