Macao, as an independent customs territory and an international free port, does not impose tariffs on most imported items. The city allows for free trade and free flow of capital and it sets no control over foreign exchanges. Its legal tender, the Pataca, can be freely converted to any other international currency.

Following the "One Country, Two Systems" principle, Macao's constitutional document – the Basic Law – stipulates the regions keep its finances independent of the Chinese mainland. The SAR government has the power to levy taxes and utilize and distribute revenues, without handing them over to the Central Government in Beijing. In terms of its municipal taxes, Macao's legislative body enacts laws to categorize tax types, rates and reductions.

Under its current taxation structure, the SAR government adopts an overall low-tax policy. Take corporate tax for example. Its tax rate stands at 12 percent, which is much lower than many other advanced economies.