Macau Advised to Cut Gambling Taxes
January 11, 2017 Taxation in China
According to the results of new research conducted by Wang Changbin, an academic at the Gaming Teaching and Research Centre of the Macao Polytechnic Institute, the government of Macau should lower its taxes on gambling, in order to stay competitive in Asia.
Currently the overall tax burden faced by Casinos in Macau equates to an average of 39 percent on all gambling revenues, although the exact rate may vary based on the exact nature of the gambling and the clientele.
Wang Changbin suggested that Macau could investigate the feasibility of implementing a tax model similar to the one used in Singapore.
Gambling taxes in Singapore are currently set at 15 percent for mass-market play, while VIP gaming is taxed at 7 percent, alongside a standard 7 percent GST on both forms of gaming.
It was noted that VIP gaming can be a very lucrative and competitive market, and that is where the government should focus its attention, as VIP players are wealthy, but also highly mobile, meaning that Macau will face increasing competition for their attention, and profits.