The Macao SAR Government extended in May the tourism tax exemption programme to more beneficiaries, in a move that is expected to benefit more than 370 tourism service establishments.
The measures fall under the “2021 Scheme for Employment Security, Economic Stabilisation and Care for Residents’ Livelihood”. The tourism tax exemption programme involves a MOP379-million package, as part of the Macao SAR Government’s scheme aimed at reviving the economy, and propelling the city’s travel trade towards revitalisation.
Tax waiver for more tourism establishments
The Macao SAR Government has expanded its considerable support to additional business categories in the travel trade. The tourism tax exemption now includes tourism service establishments such as hotels, nightclubs, bars, saunas, health clubs, massage parlours, and karaoke lounges and so forth.
These establishments are added to those already listed for tax incentives in the Budget Proposal for Fiscal Year 2021.
According to the provisions of the articles on tourism tax exemption in the Budget Proposal for Fiscal Year 2021, as amended by Law No. 3/2021, the establishments concerned will be exempt from the tourism tax levied at 5% on their services provided, effective from 11 May 2021, until 31 December 2021.
If tourism service establishments levy the tourism tax on consumers unlawfully within the tax-exemption period, it is mandatory for the establishment to be taxed in accord and fined. Additionally, unlicensed establishments and those levying the tax on invoices, or other, similar documents, will not be exempt from tourism tax.
While Macao is in the midst of transition towards economic recovery, the Macao SAR Government is offering considerable support to the travel trade. With the steady rise in visitor arrivals so far this year, Macao Government Tourism Office is dedicated to the supervision of licensed establishments.
The travel trade is obliged to comply with the regulations on tourism service establishments, and to rigorously follow the pandemic prevention measures issued by the Macao SAR Government, to safeguard Macao’s image as a healthy, safe and quality destination.