Basic Law of the Macao Special Administrative Region/Chapter V

Chapter V Economy

Article 103

The Macao Special Administrative Region shall, in accordance with law, protect the right of individuals and legal persons to the acquisition, use, disposal and inheritance of property and their right to compensation for lawful deprivation of their property.

Such compensation shall correspond to the real value of the property concerned at the time and shall be freely convertible and paid without undue delay.

The ownership of enterprises and the investments from outside the Region shall be protected by law.

Article 104

The Macao Special Administrative Region shall have independent finances.

All the financial revenues of the Macao Special Administrative Region shall be managed and controlled by the Region itself and shall not be handed over to the Central People's Government.

The Central People's Government shall not levy taxes in the Macao Special Administrative Region.

Article 105

The Macao Special Administrative Region shall follow the principle of keeping expenditure within the limits of revenues in drawing up its budget, and strive to achieve a fiscal balance, avoid deficits and keep the budget commensurate with the growth rate of its gross domestic product.

Article 106

The Macao Special Administrative Region shall practise an independent taxation system.

The Macao Special Administrative Region shall, taking the low tax policy previously pursued in Macao as reference, enact laws, on its own, concerning types of taxes, tax rates, tax reductions, allowances and expenditures, and other matters of taxation. The taxation system for franchised businesses shall be otherwise prescribed by law.

Article 107

The monetary and financial systems of the Macao Special Administrative Region shall be prescribed by law.

The Government of the Macao Special Administrative Region shall, on its own, formulate monetary and financial policies, safeguard the free operation of financial markets and all kinds of financial institutions, and regulate and supervise them in accordance with law.

Article 108

The Macao Pataca, as the legal tender in the Macao Special Administrative Region, shall continue to circulate.

The authority to issue Macao currency shall be vested in the Government of the Macao Special Administrative Region. The issue of Macao currency must be backed by a 100 per cent reserve fund. The system regarding the issue of Macao currency and the reserve fund system shall be prescribed by law.

The Government of the Macao Special Administrative Region may authorize designated banks to perform or continue to perform the function of its agents in the issuance of Macao currency.

Article 109

No foreign exchange control policies shall be applied in the Macao Special Administrative Region. The Macao Pataca shall be freely convertible.

The foreign exchange reserve of the Macao Special Administrative Region shall be managed and controlled by the Government of the Macao Special Administrative Region according to law.

The Government of the Macao Special Administrative Region shall safeguard the free flow of capital within, into and out of the Region.

Article 110

The Macao Special Administrative Region shall maintain the status of a free port and shall not impose any tariff unless otherwise prescribed by law.

Article 111

The Macao Special Administrative Region shall pursue the policy of free trade and safeguard the free movement of goods, intangible assets and capital.

Article 112

The Macao Special Administrative Region shall be a separate customs territory.

The Macao Special Administrative Region may, using the name "Macao, China", participate in relevant international organizations and international trade agreements (including preferential trade arrangements), such as the General Agreement on Tariffs and Trade and arrangements regarding international trade in textiles.

Export quotas, tariff preferences and other similar arrangements, which are obtained or made by the Macao Special Administrative Region or which were obtained or made but remain valid, shall be enjoyed exclusively by the Region.

Article 113

The Macao Special Administrative Region may issue its own certificates of origin for products in accordance with prevailing rules of origin.

Article 114

The Macao Special Administrative Region shall, in accordance with law, protect the free operation of industrial and commercial enterprises and make its own policies on the development of industry and commerce.

The Government of the Macao Special Administrative Region shall improve the economic environment and provide legal guarantees for promoting the development of industry and commerce and for encouraging investments, technological progress and development of new industries and new markets.

Article 115

The Macao Special Administrative Region, in the light of its economic development, shall make labour policy and improve labour law on its own.

The Macao Special Administrative Region shall establish consultative co-ordination organisations composed of representatives from the government, the employers' organizations and the employees' organizations.

Article 116

The Macao Special Administrative Region shall maintain and improve Macao's previous systems of shipping management and shipping regulation, and make shipping policy on its own.

The Macao Special Administrative Region shall be authorized by the Central People's Government to maintain a shipping register and issue related certificates under its legislation, using the name "Macao, China".

With the exception of foreign warships, access for which requires the special permission of the Central People's Government, ships shall enjoy access to the ports of the Macao Special Administrative Region in accordance with the laws of the Region.

Private shipping businesses and shipping-related businesses and terminals in the Macao Special Administrative Region may continue to operate freely.

Article 117

The Government of the Macao Special Administrative Region may, with the authorization of the Central People's Government, formulate, on its own, various systems for the civil aviation management.

Article 118

The Macao Special Administrative Region shall, on its own, make policies on tourism and recreation in the light of its overall interests.

Article 119

The Macao Special Administrative Region shall carry out the protection of environment in accordance with law.

Article 120

The Macao Special Administrative Region shall, in accordance with law, recognize and protect all the lawful leases of land granted or decided upon before the establishment of the Macao Special Administrative Region which extend beyond 19 December 1999, and all rights in relation to such leases.

The grant or renewal of land leases after the establishment of the Macao Special Administrative Region shall be dealt with in accordance with the relevant land laws and policies of the Region.