Macau Presents New Tourism Tax Scheme, Raises Questions

Macau is closing in on one of the largest gambling law reforms in its history. Casino operators are entering an unknown era, and changes to tourism tax laws could cause additional concerns.

Macau lawmakers will soon reveal the final outline of its updated gambling laws. As more is revealed about the changes, casino operators in the Chinese SAR are already preparing for a significant shift in their operations.

The city’s Legislative Council just approved a bill that will impact those operations. Inside Asian Gaming reports that lawmakers have updated the language that guides how Macau applies its tourism tax.

If they decide to implement the changes, it could increase how much money businesses pay in taxes. It might also lead to a decrease in tourism, which would please some in Macau. The city has repeatedly sought ways to reduce mass tourism in favor of “high-quality” tourism.

New Taxes In Macau
The Amendment of the Tourism Tax Regulations changes the definition of what the tax covers. Currently, there is a 5% tourist tax added to “services rendered” at businesses such as hotels, health clubs and more. The new language updates this to read “goods and services rendered directly or indirectly by the relevant establishments and services.”

The inclusion of “indirectly” is vague and subject to interpretation unless the government weighs in. The Third Standing Committee of the Legislative Council discussed the amendment last Friday and is now waiting to receive clarification.

Lei Wai Nong, Macau’s Secretary for Economy and Finance, provided some guidance when the subject came up in Friday’s meeting. He asserted that the amendment clarifies the “attribution” of the tax. However, ambiguity remains.

Source: https://www.casino.org/news/questions-arise-after-macau-presents-new-tourism-tax-scheme/