Setting up and running a Macau payroll
Macau is a completely unique and autonomous region of China, situated on the southeastern coast of mainland China. The special administrative area is the most densely populated area on earth, and also has one of the highest levels of GDP (by purchasing power parity) in the world, making it an excellent place to do business despite its small size.
If your organization is interested in expanding into Macau then an important phase of the process will probably be establishing and maintaining a payroll to hire employees locally. This process can be quite complex, and you may experience delays of weeks or even months dealing with the administration and compliance work. To simplify this process, you can take advantage of Macau payroll outsourcing to hand over the tasks included in payroll setup and management to Macau payroll experts.
At Horizons, we specialize in providing Macau payroll outsourcing to foreign businesses aiming to build a presence in the region. We will handle the setup, management, and associated administration of your Macau payroll, simplifying the whole process and helping you focus on the job of expansion, even if you don’t have an established entity in Macau.
Why choose the Horizons payroll solution?
If you have an entity
For organizations that have already established an official entity in Macau, we offer full payroll outsourcing. Our expert team will set up and manage your payroll, then take care of all the associated administration, HR, and compliance work.
This outsourcing service is ideally suited to large organizations and those looking at Macau with a long-term view.
If you don’t have an entity
For organizations that have not already established an entity in Macau, we offer our standard Macau payroll outsourcing service with the added use of our Macau PEO. Our subsidiary will act as employer of record for your new hires, meaning you won’t have to go through the lengthy process of establishing an entity in Macau.
This service provides a low-risk, flexible, and scalable option for organizations interested in expanding into Macau.
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Macau payroll guide
Taxes and withholdings in Macau
Macau’s income tax operates on a progressive model, with higher earners paying a higher percentage of their income in taxes.
The rates are low compared with most of the world, ranging from 0% up to a maximum of 12%.
Corporate taxes are either 3%, 9%, or 12%, depending on profits.
Macau entitlements and terminations
Whenever hiring in Macau, it’s important to draw up a formal employment contract. This contact should be agreed upon by both parties, and detail the specific entitlements and termination terms to keep things as simple as possible.
Employers can terminate employment at any time, but they are required to give seven days or more of notice prior to ending the contract. Alternatively, they can pay equivalent severance pay and forego the notice period.
How to establish Macau payroll outsourcing
If you want to hire in Macau and set up an in-country payroll, we recommend officially establishing a Macau-based entity. However, this process can be lengthy and confusing, potentially leading to significant delays and negatively affecting revenues, so it’s always important to get expert advice.
Another option is to outsource your payroll setup and management to Horizons. We can offer the use of our Macau PEO & EOR to act as employer of record for your Macau employees, so you don’t have to navigate the complex process of establishing an entity and can benefit from our solutions even without a registered entity in Macau.
Additionally, we can set up and run your payroll, HR, compliance, and any other associated work, allowing you to work on successfully expanding your businesses in Macau.
Manage payroll in Macau
Whether it’s EOR service or just payroll management, Horizons’ employment experts can help you get started in 24h.