Macau expects 80% tax cut in 2022 via special commissions
The Macau government estimates that by 2022 it will only collect 43 million MOP ($ 5.35 million) in taxes on commissions paid by casinos to junkets, a decrease of 79.5% from the 210 million MOP of these taxes that the government expects to receive for fiscal year 2021.
The information was included in a summary report of the city’s 2022 budget plan released by the Financial Services Bureau.
In 2020, the actual amount of taxes collected on commissions paid by casinos to junkets was almost MOP 66.54 million, 68% lower than the government’s initial forecast for the year, which was MOP 210 million, according to the execution of the 2020 budget. Report.
Junkets – also known as game promoters – are licensed by the Macau government to promote VIP games at city casinos. Their services include: arranging game credits for players; recovery on losses generated by the high-roller game; and the organization of player accommodation.
A 5 percent withholding tax is levied on commissions paid by gambling operators to junkets; but the withholding tax is not deducted from the gross value. In Macau, junket operators are offered incentives to bring players to casinos by typically being offered either a revenue share or a commission on token revenue, the latter capped at 1.25. %.
In January 2021, there was 85 approved game promoters in Macau – entities or individuals – according to the latest data available from the city’s gaming regulator. This number marked the eighth consecutive year of decline in the number of licensed junkets in the Macau market.