This content is from: Macau SAR

Macau SAR sets new financial budget for 2022

João Nuno Riquito and Kimberley Cheong of Riquito Advogados explain how the government aims to balance its financial budget in light of continued deficits

On December 30 2021, Law 21/2021 was published in the Macau SAR’s Official Gazette, approving the financial budget for year 2022.

Since the outbreak of Covid-19 back in 2020, Macau SAR has been suffering a drastic reduction in the number of visiting tourists, with consequent negative GDP for the entire year of 2021, leading the region to launch a number of measures seeking to stabilise the economy and employment.

It is expected that in 2022, the region will continue to have a deficit in its financial budget and will have to maintain the budgetary equilibrium by mobilising the financial reserves. The estimated total ordinary revenue for the coming year will be MOP$100,128,928,600 (approximately US$12.5 billion) and the total revenue from special organisations will be MOP$13,755,143,300. The revenue originating in the gaming tax will continue to be the major source of revenue for 2022.

The government aims to reduce the current expenses on the public sector, for example, the salary index for workers in the public sector will be kept, thereby making funds available for social benefits and for investment in local infrastructure projects. The budget introduces various tax relief measures, listing that for the business tax, stamp duty for property conveyance, tourism tax, salaries tax, profits tax and property tax, taxpayers can enjoy tax reduction, exemption or tax return if they fulfil the requirements stated on the budget.

Furthermore, the estimated expenditure continues to include several measures targeting the challenges posed by the pandemic crisis, with an emphasis new public housing projects and assistance to small and medium-sized enterprises, whilst relevant tax relief measures are introduced in an effort to attract more foreign investments and generally strengthen Macau SAR’s position.

João Nuno Riquito
Managing partner, Riquito Advogados
Kimberley Cheong
In-house consultant, Riquito Advogados

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