Macau: Identify tax resident of other jurisdictions

Automatic Exchange Portal is a global new requirement underlined by the Organization for Economic and Co-operation Development OECD. More that 100 jurisdictions have committed to the exchange of information. Macao Special Administrative Region SAR has committed to the first Automatic Exchange of Information in 2018. 

Effective July 1 2017, financial institutions engaging in financial services in the Macao SAR will acquire information from their existing and new account holders, to identify whether they are the tax residents of other jurisdictions. Financial institutions shall supply the information of relevant accounts to the Financial Services Bureau (Macao tax authority DSF) in order to engage in the automatic exchange of information with relevant tax jurisdiction in accordance with the provisions of tax treaties. 

(Automatic Exchange Portal) is not applicable for a Macao resident individual generates income from Macao and he is a tax resident of Macao only with no tax residence in other tax jurisdictions. A company is resident in Macao if it is incorporated in Macao SAR. A Macao incorporated limited company, tax resident in Macao, generates revenue from commercial or industrial activities, is subject to worldwide profit. A foreign company that incorporated outside Macao is not considered a Macao tax resident and it is subject to Macao tax for income derived from business or activities in Macao. Macao financial institution will identify tax residents of other jurisdictions and fulfill obligation of automatic exchange of information for international cooperation.

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