On June 12 2017, a new regime for the exchange of
information with foreign entities on tax matters was published
in the Macau Official Gazette – Law 5/2017.
Subsequently, on June 28 2017, the Executive Order 211-2017 was
gazetted, approving the Common Reporting Standard and Due
Diligence Procedures. These rules will now govern the exchange
of information by Macau SAR in the carrying out of
international agreements and conventions to which it is a party
on double taxation and/or on prevention of tax evasion.
Under the new regime, which is already applicable, the
relevant information will be exchanged by the Macau SAR (i)
upon a request received from a foreign contracting country;
(ii) at the initiative of the Macau SAR authorities; or, (iii)
automatically under the terms and at the relevant intervals
foreseen in the applicable international agreements.
The rules on automatic exchange of information apply to
financial institutions and offshore entities that provide
financial services to persons who are tax residents of foreign
contracting countries holding financial accounts in the Macau
SAR. Those institutions have to request their (existing and
new) clients to provide the necessary information to assess
whether they are tax residents of other jurisdictions. The
relevant findings have to be subsequently reported to the Macau
tax authority for the purposes of their communication to the
relevant foreign country.
As a rule, the financial institutions have to inform their
clients that the information in respect of their accounts is
subject to reporting under this regime and that it will be
exchanged with the country of tax residency, for tax
Different rules and procedures on due diligence will apply,
depending on the balance registered in the accounts, on the
date of opening of the accounts and on the identity of the
client (individual or entity).
(to be continued)
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