Two years have passed since the Monetary Authority of Macau (AMCM) organised the Development of Financial Leasing Business in the Macau SAR forum in Beijing. The purpose of the forum was to promote the implementation of Macau SAR (MSAR) governing lines for the development of the MSAR financial leasing system and to leverage MSAR as a platform between China and Portuguese speaking countries, and between the Greater Bay Area and Europe, within the Greater Bay Area initiative and China's One Belt One Road initiative, a position reiterated in the 2018 governing lines. Since the forum, China and Hong Kong SAR's banking and financial institutions have shown increased interest in Macau's financial leasing business. These financial institutions have a certain degree of expectation on the amendments that will be introduced to the present legal systems and that additional benefits will be created in relation to financial leasing companies' operations from and to MSAR. So far, two financial leasing companies have been incorporated and their operations authorised in Macau, in addition to the general authorisations that have been issued for banks to operate in Macau.
Although it is publicly known that consultations and discussions with experts and companies dedicated to financial leasing activity have taken place, details of the future amendments to the Decree-Laws 51/93/M and 1/94/M have not been made public. In its existing format Decree-Law (DL) 51/93/M establishes the regime applicable for financial leasing companies. According to this DL, financial leasing companies must have a minimum share capital of MOP30 million ($3.7 million approximately), half of which must be deposited with the AMCM at the time of the company's incorporation, and the purpose of their companies must be exclusively the performance of financial leasing. Decree-Law 1/94/M establishes the fiscal incentives applicable to financial leasing. According to this DL, financial leasing activities are exempt from stamp duty on the company's incorporation and share capital increase, in contracts executed that concern the financial leasing of equipment, real estate, allocated or to be allocated for industry and services or the personal residence of the lessee, and any interest and commission related to the activity. They are also exempt from property and rental tax.
|João Nuno Riquito||Ricardo Vera-Cruz|
© 2021 Euromoney Institutional Investor PLC. For help please see our FAQs.