IPIM optimises the Contents of the “Regulations on Participation in Promotional Activities”

The Macao Trade and Investment Promotion Institute (IPIM) first formulated the “Regulations on Participation in Promotional Activities” in 1995 to provide financial incentives, consultancy and application services to local enterprises and non-profit making organisations wishing to participate in overseas exhibitions. Eligible organisations are able to receive financial incentives for the expenses incurred during the participation of an exhibition up to certain amount. In 2007, IPIM expanded the criteria to include local exhibitions. The revised Regulations on Participation in Promotional Activities effective from 1 January 2011 include amendments such as streamlined service and application procedures, assistance with the submission of documents, categorisation of exhibitions and trade fairs as well as the clarifying the criteria for fixed subsidy total for exhibitions and trade fairs participation. The new measures aim to give applicants a clearer understanding of the application procedures, their rights and obligations as well as how to obtain application results.

Major contents:

(1) Streamlined application procedures and efficient document submission process
To ensure applicants are able to obtain the approval information in good time, enabling them to have a longer preparation time for the exhibition, the “Regulations” will adjust the counting mechanism from working days to consecutive days, applicants should submit a written application to IPIM no less than 45 days before the exhibition with any late submissions of supporting documents being made 30 days before the exhibition. The “Regulations” will also introduce a series of facilitation measures, e.g. the submission of documents issued by Macao Financial Services Bureau – Salaries tax – Nominal List of Employees and Wage-Earners -Form (M3/M4 Form), Profits tax payment advice M5 and M6 form, as well as Social Security Contributions Form are exempted. In addition, for enterprises and non-profit making organisations which may take part in exhibitions more than once in the same financial year, documents such as the copies of the Declaration Form of Start/Alteration of Activity of Business Registration (M/1 Form) and Business Registration Tax payment advice (M/8 Form) issued by Macao Financial Services Bureau, and copies of ID of shareholders will be exempted and can be replaced with a declaration, provided that the information has not been changed or updated within the same year.

(2) Augmented Facilitation Measures for exhibitions and trade fairs
Exhibitions – applicants may choose to lodge an application for the financial incentive on exhibition participation promotional materials 45 days prior to the exhibition, or alternatively submit the application for promotional materials (i.e. printed or audio-visual materials) after the exhibition, by presenting the approval documents on exhibition participation financial incentives issued within the same financial year.

Trade fairs – applicants must replenish supporting documents at least 30 days before the fair. While the quotations may be submitted within the aforementioned period, or within five days after the approval notification is received.

(3) Special Incentive for Macao Products
Furthermore, to be in line with Macao SAR government’s policy of supporting the Convention and Exhibition industry, the “Regulations” will lower the criteria even further for parties eligible for the subsidies and will use discretion in the case of applicants not fulfilling the criteria required for registration with Macao Financial Services Bureau for at least 2 years or at least 50% of the company shareholders are Macao residents (applicants should provide relevant supporting documents, e.g. Certificate of origin and Trademark Registration to proof that meet requirements of “Made in Macao” or Macao Brands”).

(4) Categorisation of incentive applications for exhibitions and trade fairs, incentive amount accumulation system on trade fairs
From 1 January 2011, enterprises wishing to participate in exhibitions lasting at least two days are eligible to apply for financial incentives.The approval procedures for exhibitions and trade fairs subsidies will be classified in two categories, with the approval principles of exhibition participation remaining unchanged. To enable applicants to obtain the subsidy timely and make flexible use of the amount, as well as to explore markets through the participation in exhibitions, local trade fairs, the review and evaluation for applications for trade fair subsidies will adopt a fixed subsidy accumulation system in 2011. The maximum amount that each enterprisenon-profit making organisation may receive for each of the first two applications for trade fairs is MOP 5,000.00, with no more than MOP 30,000.00 approved per year.

IPIM will further enhance settlement procedures after the exhibitions and standardise the requirements and format of the post-exhibition report. IPIM aims to efficiently process the expense reimbursement for the approved cases, and the sustainable use of the comments collected from post-exhibition questionnaire for assessing the effectiveness of related services and facilities.

Eligibility for the Incentive Measures

(1) Enterprises that are registered in Macao and have fulfilled tax obligations for two years and at least 50% of the company shareholders are Macao residents or wholly owned by a Macao enterprise;
(2) enterprises not fulfilling the above conditions and having obtained proof of “Made in Macao” or “Macao Brands” may be considered on a case-by-case basis;
(3) non-profit making organisations registered in Macao which have contributed to the economic prosperity, economic and social development of Macao;
(4) for enterprises under the same group or enterprises with the same name, participating in the same exhibition with identical or the same type of products, only one of them may receive the incentive measures (applicable to participation in exhibition not organised by IPIM).
Please refer to the “Regulations on Participation in Promotion Activities” for details regarding application procedures and respective approval process.

* Under normal circumstances, approved enterprise for the financial incentives shall pay an application fee of MOP 10,000. In cases where the air tickets are subsidised by IPIM as mentioned above, a sum of MOP6,000 will be refunded to the applicant after the exhibition; otherwise, the amount of MOP8,000 willbe refunded to the applicant after the exhibition.

** Production fees of printed materials (flyers, pamphlets, etc) refers to printing fees.

*** Production fees of audio-visual materials (CD, DVD, etc) refers to duplication and burning fees.

Services including transportationair tickets production of printed materials production of audio-visual materials must be purchased through and held responsible by companies enterprises registered in Macao. In considering other applications, priority will be given to companies enterprises registered in Macao.

The Macao SAR Government is focusing on the development of the convention and exhibition industry as it is one of the emerging industries. The industry is playing an important role in facilitating the development of Macao’s appropriate economic diversification. The Government has set up a Committee for Development of Convention and Exhibition Industry, in 2011 it will confer full support for the development of the convention and exhibition industry and consolidate policies concerning the allocation of financial resources, logistics, storage and human resources training policies. According to the data provided by the Statistics and Census Service, a total of 1,019 convention and exhibition activities were held during the first three quarters of 2010, showing rapid growth. There are currently over 140,000 square metres of convention and exhibition venue space in Macao, promoting the growth of a number of branded conventions and exhibitions.

To cope with future of Macao’s convention and exhibition, IPIM,being the department designated for promoting trade and investment, will continue to devote itself to implementing the SAR Government’s policies of economic development. It will also provide various supporting measures to furnish support and assist in developing the various conventions and exhibitions in Macao, to promote and foster communications and cooperation between local and overseas exhibition enterprises and help to build and nurture the growth of local branded exhibitions to accelerate the growth of the entire convention and exhibition industry.