The Outline of the 14th Five-year Plan (2021-2025) for National Economic and Social Development and the Long-Range Objectives Through the Year 2035
explicitly supports Macao in enriching itself as a World Centre of Tourism and Leisure, working with Guangdong to develop Hengqin, expanding its function as a Commercial and Trade Co-operation Service Platform between China and Portuguese-speaking Countries (PSCs), developing Macao into a base of exchange and co-operation with traditional Chinese culture as mainstream and other cultures flourishing in harmony.
Giving full play to its strengths and based on its development position as “One Centre, One Platform, One Base”, Macao will step up its effort to nurture the big health industry that takes research, development and manufacturing of traditional Chinese medicine (TCM) as its core, modern finance, high and new technology, MICE commerce, cultural and sports industries, with the research, and development and manufacture of traditional Chinese medicine as an entry point, in order to foster more economic boosters, construct a moderately diversified and sustainable industrial structure.
Macao SAR Second Five-Year Plan for Economic and Social Development (2021-2025)
Five Key Areas in the Second “Five-Year Plan”
1. Speeding up the city’s adequate economic diversification
2. Promoting social and welfare advancement
3. Optimising the strategy to build a liveable city
4. Improving public governance
5. Better integrating Macao into national development
The Macao Special Administrative Region was established on 20 December 1999, where the Constitution of the People’s Republic of China and the Basic Law of the Macao SAR are followed, and the “One Country, Two Systems” policy is implemented. The city has a safe and stable society with a steadily developing economy.
Macao has a simple and low taxation system, with profits tax and salaries tax capped at 12%.
Macao allows the free flow of capital and adopts a currency board system with stable exchange rate. The issuance of patacas is completely supported by foreign exchange reserves.
In Macao, business operational principles conform to international conventions and standards, and the same procedures for company incorporation apply to both local and foreign investors, which provides all investors with an ideal environment for investment and business.
The city has 10 tertiary education institutes.
The University of Macau and the Macau University of Science and Technology have made considerate progress and earnt a place in the Quacquarelli Symonds (QS) World University Rankings 2023 and the Times Higher Education World University Rankings 2023.
- The Macao Institute for Tourism Studies has been ranked among the Asia’s top five in QS World University Rankings by Subject (Hospitality & Leisure Management) for five consecutive years.
- As of November 2022, the Macao SAR grants the statutory exemption of “visas” or “entry permits” to nationals of 81 countries and regions.
- 144 countries and regions have agreed to grant visa exemptions or visas on arrival to holders of a Macao SAR passport.
As of November 2022, Macao has signed the Agreement for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income with eight countries and regions, including Mainland China, Portugal, Belgium, Mozambique and Cape Verde etc., effectively reducing the taxes on cross-regional enterprises and the burden of individual taxation.
Macao has also signed the Tax information Exchange Agreement with 16 countries including Australia, Sweden, India, the United Kingdom and Ireland, etc., in order to build a fair international taxation environment.
In fiscal year 2022, the Macao SAR Government exempted Macao enterprises from profits tax on income obtained or generated in PSCs, but this is only limited to the income that has been taxed locally.
Mainland and Macao Closer Economic Partnership Arrangement (CEPA) has been implemented since 2004.
Ten supplementary agreements and several subsidiary agreements have since been signed, covering four economic and trade areas including Trade in Goods, Trade in Services, Investment, and Economic and Technical Co-operation.
Joined over 120 international organisations such as the World Trade Organisation (WTO), the United Nations Educational, Scientific and Cultural Organisation (UNESCO) and the World Tourism Organisation (UNWTO).