Macau concessionaires exemptec from paying complementary income tax

The six Macau casino concessionaires are not required to pay extra income tax on their winnings from gambling.

The latest exception was revealed on Monday in a government dispatch from Macau that was released to the public. The period of validity is set for January 1, 2023, to December 31, 2027. The date of this dispatch is January 1, 2023, which also happens to be the beginning date of the operators’ new 10-year concessions. Ho Iat Seng, the Chief Executive of Macau, announced it on January 29.

The most recent concession agreement subjects each operator to an effective tax rate of forty percent on casino gross gaming revenue (GGR). Furthermore, every concessionaire in Macau is obliged by the government to pay an annual premium of MOP30 million (US$3.72 million), which is predetermined.

A variable yearly premium is also imposed, with the amount determined by the gaming inventory of the casino concessionaire. The premium amounts are MOP1,000 for each gaming machine (including slot machines), MOP150,000 for each mass-market gaming table, and MOP300,000 for each VIP gaming table. The annual variable premium per operator is not guaranteed to be less than the cost of 500 gaming tables and 1,000 gaming machines.

Furthermore, a special premium must be applied if the combined annual gross gaming revenue (GGR) of every gaming table and gaming machine is less than MOP7 million (about HK$6.8 million) and MOP300,000.

Original story by: GGRAsia