“After the preferential individual tax policy for Macao residents, I received a tax refund of about 80,000 RMB. The policy is really attractive!” remarked Chen Cailing, a postdoctoral researcher from the Traditional Chinese Medicine Science and Technology Industrial Park of Cooperation between Guangdong and Macao.
Recently, Macao residents paying individual tax in Hengqin in 2021 have all received tax refunds during the settlement of individual tax. According to the actual tax reduction, the overall tax of Macao residents in Hengqin has decreased by up to 70%, ensuring Macao employees in Hengqin enjoy same income tax rates as in Macao.
Over 90% of Macao employees in Hengqin received tax refunds under 10,000 RMB. Therefore, the tax authorities in Hengqin have provided classified and refined services to facilitate Macao residents there.
The tax authorities have applied a data model to calculate the taxable amount eligible for full reduction under the preferential policy. Macao taxpayers with an annual taxable income in Hengqin no higher than that amount, accounting for over 80 percent of the group, can confirm their declaration with “a mere click” via the mobile Individual Income Tax App.
“The preferential IIT policy for Macao residents in Hengqin covers the operating income of individual industrial and commercial households, which is attractive to Macao entrepreneurs. The tax rebate procedures are convenient and speedy. I can receive a tax refund with one click, which saves me a lot of time!” said Qiu Meining, a Macao resident running a bakery in Hengqin.
Meanwhile, the tax authorities in Hengqin provide person-to-person services to taxpayers with large sums of tax refunds. Guidance is offered on how to use the auxiliary system and apply for preferential tax rates through the mobile IIT app or Golden Tax System. A list of such taxpayers is kept for follow-up management and tracking.
“The policy has a positive effect on the integration of Macao residents into the development of the Cooperation Zone. Hengqin enjoys goods policy, service and environment, and I recommend Macao residents to work here,” said Ding Liqiang, a postdoctoral fellow working in the medical technology industry in Hengqin.
●Guidelines for Macao residents to file preferential tax refund on individual income tax
Eligible subjects can apply online, offline, or entrust their units for handling. Materials needed include identity certificates (a Macao ID Card, mainland Travel Permit for Hong Kong and Macao Resident, etc.) and work certificates (labor contract, work agreement, and investment agreement, etc.).
Filing channels：
(1) Online filing: Taxpayers use their registered accounts and passwords to log into the auxiliary system for Macao residents’ personal income tax refund at http: //120.25.253.65:18600/amsfcsxt. Fill in their basic information, upload attachments, calculate deductible tax, and apply for tax refund.
(2) Offline filing: Taxpayers apply for tax refund through mailing services or at a local tax service outlet at Hengqin. After being verified and approved by the unit and relevant departments of the Cooperation Zone, resident taxpayers apply for tax refund through the China e-Tax System and non-resident taxpayers apply for tax refund through V-Tax platform or the tax service outlet at Hengqin.
(3) Units filing: Entrusted units fill in the basic information of Macao employees or investors, including income and tax amount, on the auxiliary system. And then they can apply for tax refund for Macao residents through the China e-Tax System, V-Tax platform, or the tax service outlet at Hengqin.
Author: Lynette (Intern)
Editor: Wing, Nan, Will, Jerry