During the third quarter of 2021, Macao SAR was inundated with information about the much touted âfinancial diversificationâ of the Special Administrative Region (SAR) with a number of government initiatives in the works for it.
In October, the Executive Council (EC), an advisory body to the Chief Executive, announced that it had completed and ultimately handed over the draft of what will be the future Macao SAR Tax Code (MTC) to the Legislative Assembly (AL). This came after bills submitted for public consultation in 2011 and 2016 failed to reach LA.
More than a simple compilation of the separate tax laws passed in the 1970s and currently still in force, the objective of the MTC is to reorganize and update the local tax system, finally introducing concepts already commonly used in d ‘other jurisdictions such as’ tax resident’ and ‘tax residence’. Written as a true general tax code, its recognized objectives are to “better comply with the international tax obligations of the SAR” and “to better attract foreign investment”.
Another notable initiative was the launch of the Central Securities Depository (CSD), whose final design and testing phase are nearing completion according to the Macao Monetary Authority (AMCM).
Designed in collaboration with China Central Depository & Clearing Co, Ltd, the CSD will provide securities account opening services and central securities depository services and is seen as a crucial financial infrastructure to strengthen the financial market integration of Macao SAR with those abroad.
On December 6, 2021, the AMCM also announced the launch of a new trial service of rapid interbank transfer for small amounts, named “easy transfer”, supported by a platform of “fast payment service” (FPS). . This service will be available for local bank accounts in Patacas (MOP). After registering for the service through their bank and receiving an âFPS IDâ, users can transfer small amounts to other bank accounts in real time and around the clock using only their mobile phones.
The transfer is made by entering the telephone number of the intended beneficiary, which must also be registered as a user of the platform. The FPS interbank platform will also accept phone numbers from mainland China and Hong Kong, and transfers made using the service will be completed within 30 seconds, according to AMCM.
JoÃ£o Nuno Riquito
Managing Partner, Riquito Advogados
Francisco Trigueiros da Cunha
Registered lawyer, Riquito Advogados
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