Harmful Tax Practices – 2018 Peer Review Reports on the Exchange of Information on Tax Rulings

Macau (China)

Macau (China) (“Macau”) has met all aspects of the terms of reference (OECD, 2017[3]) (ToR) for the calendar year 2018 (year in review) that can be met given in the absence of rulings being issued.

In the prior year report, Macau did not receive any recommendations.

Macau cannot legally issue any type of ruling within the scope of the transparency framework.

As no exchanges were required to take place, no peer input was received in respect of the exchanges of information on rulings received from Macau.

Introduction

This peer review covers Macau’s implementation of the BEPS Action 5 transparency framework for the year 2018. The report has four parts, each relating to a key part of the ToR. Each part is discussed in turn. A summary of recommendations is included at the end of this report.

A. The information gathering process

As no rulings are issued, this section is not assessed.

B. The exchange of information

As no rulings are issued, this section is not assessed.

C. Statistics (ToR IV)

As no rulings are issued, no statistics can be reported.

D. Matters related to intellectual property regimes (ToR I.4.1.3)

Macau offered an intellectual property regime (IP regime)1 that was abolished from 1 July 2018. No transparency requirements under the Action 5 Report (OECD, 2015) were relevant, because:

• New entrants benefitting from the grandfathered IP regime: not applicable as the regime has been concluded as “abolished” and Macau reports that there have been no new entrants in the regime after the relevant date from which enhanced transparency obligations apply. Therefore, no enhanced transparency requirements apply.

• Third category of IP assets: not applicable as the IP regime has been abolished.

• Taxpayers making the use of the option to treat the nexus ratio as a rebuttable presumption: not applicable as the IP regime has been abolished.

Summary of recommendations on implementation of the transparency framework

Aspect of implementation of the transparency framework that should be improved	Recommendation for improvement
	No recommendations are made.

Note

← 1.  Macau offshore institution.