GLOBAL BUSINESS: INDIA VS MACAU

MUKESH PRABHAKAR REG.NO:- T 7080 PGDM(11-13)

Macau: overview
Geography:The Macau Special Administrative Region (MSAR) is a part of Chinas territory. It is located on the Southeast coast of China to the west of the Pearl River Delta. Bordering on Guangdong Province, it locates 60km from Hong Kong and 145km from the city of Guangzhou.

Population Area Religions (2006 est.) Languages

: 573,004 (est. sept 2011) : 29 sqkm : Buddhist 85%, Roman Catholic 7%, none and other 8% : Portuguese, Chinese (official languages)

Age structure : 0-14 years: 15% (male 45,635/female 40,523) 15-64 years: 76.8% (male 205,998/female 233,820) 65 years and over: 8.2% (male 22,043/female 24,984) (2011 est.) Education : definition: age 15 and over can read and write total population: 91.3% male: 95.3% female: 87.8% (2001 census)

Macau : economy overview

Macaus economic freedom is 71.8% , making its economy the 19th freest in the year 2012. As a free port, Macau has long benefited from global trade and investment. Foreign investors can conduct business on the same terms as nationals.

Taxation is low and relatively efficient.

Since opening up the gaming industry in 2002, Macau has attracted significant amounts of foreign investment. Other growth areas include finance, insurance, and real estate.

The services sector accounts for almost 90 percent of GDP and over 70 percent of total employment. Investment in resort and entertainment projects and related infrastructure has transformed Macau into one of the worlds leading tourism destinations. The economy is heavily dependent on tourism (including gaming) and light manufacturing (textiles and garments).

The top income tax rate is 12 percent, and the top corporate tax rate is 39 percent.

Macau : Rule of law

Macau has its own judicial system with a high court; the legal framework is based largely on Portuguese law. Property rights and commercial contracts are secure, but enforcement of intellectual property rights remains weak and inefficient. The Commission Against Corruption has powers of arrest and detention, and a public outreach campaign has led to a significant increase in the number of complaints handled.

Macau : regulatory environment

The overall regulatory environment remains relatively efficient. License requirements vary by type of economic activity, but general business activities such as retail, wholesale, and business consultancies do not require a license. The economy continues to lack a dynamic and broad-based labor market, in part due to the absence of serious reform efforts.

Macau : open market

The trade regime is open, with no tariffs imposed on imports. The government does not officially discriminate between foreign and domestic investors, but there are a few restrictions in services markets. A relatively small financial system, dominated by banking, provides easy access to financing. Capital markets remain underdeveloped.

Conclusion :

January 1, 2012 , To aid tax and banking-related information exchange and prevent tax evasion, India signed a double taxation avoidance agreement (DTAA) with Macau . The agreement will also help to generate a better investment climate for Indian businesses in Macau. I think we should invest .