The Government considers the decision of the European Union (EU) to include Macao on its list of “non-cooperative” taxation jurisdictions as being unilateral and biased.
The Government stressed in a statement the Macao Special Administrative Region (SAR) is absolutely not a so-called “tax-avoidance haven”, and added that the EU’s decision did not take into consideration the actual situation in the city.
Macao has closely engaged with the international community, including the EU and the Organization for Economic Co-operation and Development (OECD), on matters relating to the fight against cross-border tax evasion and promotion of a fairer taxation system worldwide.
In addition, Macao is a member of the OECD’s Global Forum on Transparency and Exchange of Information for Tax Purposes. Macao is also a member of the OECD’s Inclusive Framework on Base Erosion and Profit Shifting (BEPS), which works to implement measures against such activities by all sorts of entities.
Macao’s membership of these initiatives – approved after OECD evaluation – confirmed the city’s taxation transparency and its efforts regarding exchange of tax information, and confirmed the fact Macao was working to comply with the latest international standards, the statement read.
Macao also actively took part in the OECD’s global cooperation initiatives and had joined hands with participating jurisdictions in pushing forward tax reforms and fighting against tax evasion, the document added.
Regarding local legislation on tax matters, the Law on Exchange of Information on Tax Matters was passed in the Legislative Assembly in May and the first automatic exchange of tax information is scheduled to be carried out next year.
The Government was working diligently on the adoption in Macao of the OECD’s Convention on Mutual Administrative Assistance in Tax Matters and on the optimisation of local regulations regarding offshore activities, the statement concluded.