Tax rebates granted to employers who hire disabled employees

A bill proposing tax rebates for employers who hire people with disabilities was passed yesterday at the Legislative Assembly (AL).

The law suggests that for every single disabled employee hired, the employer is entitled to a tax reduction which, according to the Secretariat for Economy and Finance, can be of MOP5,000 per individual, although the amount might be adjusted in future iterations based on economic development.

In cases where the recruitment period is less than one year, the tax rebate shall be calculated based on the number of months.

Every disabled employee will be required to hold the Disability Assessment Registration Card issued by the Social Welfare Bureau (IAS) in order to be qualified for the tax rebate requirement. Disabled employees should also work at least 128 hours per month.

If the employers are found to have provided forged income documents, their tax reduction will be suspended, and they will also be punished in accordance with the city’s regulations.

According to Lionel Leong, Secretary for Economy and Finance, applying tax rebates is a relatively simple and practical method to entice employers to hire people with disabilities. Leong noted that, at the end of September, approximately 11,500 people in Macau held the Disability Assessment Registration Card.

“If all these people are working for employers who need to pay taxes, then the SAR government will collect MOP57.5 million less each year in taxes,” explained Leong.

Fourteen lawmakers voiced their opinions and questions upon the bill. They were mainly concerned about the regulations concerning working hours, the fact that the bill does not distinguish between people with different types of disabilities, and the fact that only enterprises paying taxes can benefit from the tax rebate policy when hiring disabled employees.

Leong Sun Iok commented: “The bill cannot encourage them [employers] to hire people with heavy disabilities.”

Agnes Lam pointed out that 128 working hours per month might be a lengthy stretch for some of the disabled.

According to government representatives, currently somewhere around 6,000 entities are qualified for the tax rebates.