SJM and Melco Crown exempt from complementary tax

SJM Holdings and Melco Crown Entertainment Ltd have been exempted from paying complementary tax, reports the Official Gazette.

In Macau, a complementary tax is imposed on the worldwide income earned by Macau-registered entities, irrespective of where their residence or headquarters are situated and irrespective of the nature of the income.

According to the Macau Complementary Tax Law, complementary tax is imposed on a progressive rate scale ranging from 3 to 9 percent for taxable profits below or equal to MOP 300,000 and 12 percent for taxable profits over MOP 300,000.

 The exemption for SJM will come into effect on January 1, 2017 and will last until March 31, 2020, while Melco Crown’s exemption will begin on January 1, 2017 and last to end of 2021.