MACAU SAR, CHINA Law and Practice Contributed by: Frederico Rato, Pedro Cortés and Calvin Tinlop Chui, Lektou
3.7 Debt Buyback Debt buyback is not forbidden by law in Macau. How- ever, when the market circumstances and contractual terms are favourable, a borrower would more com- monly consider repayment of the loan in advance. 3.8 Public Acquisition Finance There are no particular rules under Macau law regard- ing “certain funds” with respect to public acquisition finance transactions. 3.9 Recent Legal and Commercial Developments As mentioned in 3.5 Agent and Trust Concepts , the Trust Law entered into force on 1 December 2022. Thereafter, Law No 13/2023 was enacted, replacing the Macau Financial System Act of 1993 (Decree-Law No 32/93/M, 5 July 1993). Law No 15/2024, which governs insurance interme- diaries, entered into force on 1 August 2025, while the new Investment Funds Law, approved in July 2025, will take effect on 1 January 2026. The govern- ment has also reiterated its commitment to expedite the preparation and enactment of additional legisla- tion regulating the securities market and investment funds. Moreover, Law No 24/2024, which introduced a new tax regime incorporating transfer pricing rules, will also take effect on 1 January 2026. This regime will also impact banking and financing activities, as intragroup loans and other related-party transactions must comply with the arm’s-length standard and be duly documented in line with international practice. 3.10 Usury Laws The general legal interest rate in Macau is fixed at 9.75% annually. Any interest rate that exceeds three times the legal interest rate – ie, one higher than 29.25% annually – is considered as usury. Without prejudice to a contrary written stipulation regarding methods for the determination and varia- tion of interest rates, commercial interest rates are the same as the general legal interest rates, but 2% shall be added to the rate in the case of delayed repayment by a borrower.
3.11 Disclosure Requirements Contracts may be subject to registration require- ments; this would depend on the underlying assets.
4. Tax 4.1 Withholding Tax
In accordance with the Macau Complementary Tax Law, there are no provisions for withholding taxes from payments made by local companies to foreign companies. 4.2 Other Taxes, Duties, Charges or Tax Considerations Banking operations are subject to stamp duty. The following are subject to such duty at a rate of 1% over the global amount of the profits determined: • commissions relating to credit operations; • banking service commissions and other banking profits, where these result from safe value activi- ties; and • intermediation of payments and administration of capital. Nonetheless, there are statutory exemptions, includ- ing when the loan is granted by credit institutions authorised to operate in Macau. 4.3 Foreign Lenders or Non-Money Centre Bank Lenders If a foreign lender or non-money centre bank has a physical presence in Macau that meets the criteria of a permanent establishment, it may be subject to tax on its business profits derived from Macau. It is important to assess whether the activities carried out within Macau constitute the setting up of a potential permanent establishment and consider the potential tax implications accordingly.
5. Guarantees and Security 5.1 Assets and Forms of Security
The assets typically available as collateral to lenders are real estate property (eg, urban and rural proper- ties), movable property (eg, cars, ships, aircraft, com-
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