T Legislative Assembly (AL) passed the bill titled “Approval of the Tax Code” earlier this week. This bill, among other amendments, aims to consolidate several existing laws and regulations into a single document, now renamed “Tax Code” in its final version submitted to the AL.
This bill had been pending in the AL for several years without significant progress and needed to be approved before the end of the current legislative term, which concludes August 2025. If a bill is not finalized within the four-year legislative term, it must be dropped and resubmitted in a new term, effectively starting the process over.
Originally submitted to the AL October 2021, the bill was first read in November of the same year. Afterward, it was sent to the Standing Committee for further analysis in the relevant area of expertise.
According to Vong Hin Fai, president of the Third Standing Committee, the bill was delayed for nearly three years due to the government’s intention to make significant changes to the original proposal.
The new Tax Code will generally take effect Jan. 1, 2026. However, some provisions will come into force as early as next year to “ensure the efficiency of the tax information collection process.”
The final version of the bill includes various regulations to update Macau’s tax system and align it with international tax standards. The government has justified these changes by highlighting the new roles assigned to Macau under the “1+4” framework, which aims to attract more foreign investment to the region.
