All the financial re enues 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 percent 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 organizations 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.

Chapter VI Cultural and Social Affairs

Article 121 The Government of the Macao Special Administrative Region shall, on its own, formulate policies on education, including policies regarding the educational system and its administration, the language of instruction, the allocation of funds, the examination system, the recognition of educational qualifications and the system of academic awards so as to promote educational development.

The Government of the Macao Special Administrative Region shall, in accordance with law, gradually institute a compulsory education system.

Community organizations and individuals may, in accordance with law, run educational undertakings of various kinds.

Article 122 The existing educational institutions of all kinds in Macao may continue to operate. All educational institutions in the Macao Special Administrative Region shall enjoy their autonomy and teaching and academic freedom in accordance with law.

Educational institutions of all kinds may continue to recruit staff and use teaching materials from outside the Macao Special Administrative Region. Students shall enjoy freedom of choice of educational institutions and freedom to pursue their education outside the Macao Special Administrative Region.

Article 123 The Government of the Macao Special Administrative Region shall, on its own, formulate policies to improve medical and health services and to develop Western and traditional Chinese medicine. Community organizations and individuals may provide various medical and health services in accordance with law.

Article 124 The Government of the Macao Special Administrative Region shall, on its own, formulate policies on science and technology and protect by law achievements in scientific and technological research, patents, discoveries and inventions.

The Government of the Macao Special Administrative Region shall, on its own, decide on the scientific and technological standards and specifications applicable in Macao.

Article 125 The Government of the Macao Special Administrative Region shall, on its own, formulate policies on culture, including literature, art, broadcasting, film and television programmes.

The Government of the Macao Special Administrative Region shall protect by law the achievements and the lawful rights and interests of authors in their literary, artistic and other creation.

The Government of the Macao Special Administrative Region shall protect by law scenic spots, historical sites and other historical relics as well as the lawful rights and interests of the owners of antiques.

Article 126 The Government of the Macao Special Administrative Region shall, on its own, formulate policies on press and publication.

Article 127 The Government of the Macao Special Administrative Region shall, on its own, formulate policies on sports. Non-governmental sports organizations may continue to exist and develop in accordance with law.

Article 128 The Government of the Macao Special Administrative Region, consistent with the principle of religious freedom, shall not interfere in the internal affairs of religious organizations or in the efforts of religious organizations and believers in Macao to maintain and develop relations with their counterparts outside Macao, or restrict religious activities which do not contravene the laws of the Region.

Religious organizations may, in accordance with law, run seminaries and other schools, hospitals and welfare institutions and provide other social services. Schools run by religious organizations may continue to provide religious education, including courses in religion.

Religious organizations shall, in accordance with law, enjoy the rights to acquire, use, dispose of and inherit property and the right to receive donations. Their previous property rights and interests shall be protected by law.

Article 129 The Government of the Macao Special Administrative Region shall, on its own, establish a system concerning the professions and, based on impartiality and rationality, formulate provisions for assessing professional qualifications or qualifications for practice in the various professions and issuing corresponding certificates.

Persons with professional qualifications or qualifications for professional practice obtained prior to the establishment of the Macao Special Administrative Region may retain their previous qualifications in accordance with the relevant regulations of the Macao Special Administrative Region.

The Government of the Macao Special Administrative Region shall, in accordance with the relevant regulations, recognize the professions and the professional organizations recognized prior to the establishment of the Region and may, as required by social development and in consultation with the parties concerned, recognize new professions and professional organizations.

Article 130 On the basis of the previous social welfare system, the Government of the Macao Special Administrative Region shall, on its own, formulate policies on the development and improvement of the social welfare system in the light of the economic conditions and social needs.

Article 131 Local organizations providing social services in the Macao Special Administrative Region may, on their own, decide their forms of service, provided that the law is not contravened.

Article 132 The Government of the Macao Special Administrative Region shall, when necessary and possible, gradually improve the policy previously practised in Macao in respect of subventions for nongovernmental organizations in fields such as education, science, technology, culture, sports, recreation, medicine and health, social welfare and social work.

Article 133 The relationship between nongovernmental organizations in fields such as education, science, technology, culture, news media, publication, sports, recreation, the professions, medicine and health, labour, women, youth, returned overseas nationals, social welfare and social work as well as religious organizations in the Macao Special Administrative Region and their counterparts in other parts of the country shall be based on the principles of non-subordination, non-interference and mutual respect.

Article 134 Non-governmental organizations in fields such as education, science, technology, culture, news media, publication, sports, recreation, the professions, medicine and health, labour, women, youth, returned overseas nationals, social welfare and social work as well as religious organizations in the Macao Special Administrative Region may maintain and develop relations with their counterparts in foreign countries and regions and with relevant international organizations. They may, as required, use the name "Macao, China" in the relevant activities.

Chapter VII External Affairs

Article 135 Representatives of the Government of the Macao Special Administrative Region may, as members of delegations of the Government of the People's Republic of China, participate in negotiations at the diplomatic level directly affecting the Region conducted by the Central People's Government.

Article 136 The Macao Special Administrative Region may on its own, using the name "Macao, China," maintain and develop relations and conclude and implement agreements with foreign states and regions and relevant international organizations in the appropriate fields, including the economic, trade, financial and monetary, shipping, communications, tourism, cultural, science and technology, and sports fields.

Article 137 Representatives of the Government of the Macao Special Administrative Region may, as members of delegations of the People's Republic of China, participate in international organizations or conferences in appropriate fields limited to states and affecting the Region, or may attend in such other capacity as may be permitted by the Central People's Government and the international organizations or conferences concerned, and may express their views, using the name "Macao, China."

The Macao Special Administrative Region may, using the name "Macao, China," participate in international organizations and conferences not limited to states.

The Central People's Government shall, in accordance with the circumstances and needs of the Region, take measures to ensure that the Macao Special Administrative Region shall continue to retain its status in an appropriate capacity in those international organizations of which the People's Republic of China is a member and in which Macao participates in one capacity or another.

The Central People's Government shall, in accordance with the circumstances and needs of the Region, facilitate the continued participation of the Macao Special Administrative Region in an appropriate capacity in those international organizations in which Macao is a participant in one capacity or another, but of which the People's Republic of China is not a member.

Article 138 The application to the Macao Special Administrative Region of international agreements to which the People's Republic of China is a member or becomes a party shall be decided by the Central People's Government, in accordance with the circumstances and needs of the Region, and after seeking the views of the government of the Region.

International agreements to which the People's Republic of China is not a party but which are implemented in Macao may continue to be implemented in the Macao Special Administrative Region. The Central People's Government shall, as necessary, authorize or assist the government of the Region to make appropriate arrangements for the application to the Region of other relevant international agreements.

Article 139 The Central People's Government shall authorize the Government of the Macao Special Administrative Region to issue, in accordance with law, passports of the Macao Special Administrative Region of the People's Republic of China to all Chinese citizens who hold permanent identity cards of the Region, and travel documents of the Macao Special Administrative Region of the People's Republic of China to all other persons lawfully residing in the Region. The above passports and travel documents shall be valid for all states and regions and shall record the holder's right to return to the Region.

The Government of the Macao Special Administrative Region may apply immigration controls on entry into, stay in and departure from the Region by persons from foreign states or regions.

Article 140 The Central People's Government shall assist or authorize the Government of the Macao Special Administrative Region to negotiate and conclude visa abolition agreements with relevant foreign states or regions.

Article 141 The Macao Special Administrative Region may, as necessary, establish official or semiofficial economic and trade missions in foreign countries and shall report the establishment of such missions to the Central People's Government for the record.

Article 142 The establishment of foreign consular and other official or semi-official missions in the Macao Special Administrative Region shall require the approval of the Central People's Government.

Consular and other official missions established in Macao by states which have formal diplomatic relations with the People's Republic of China may be maintained.

According to the circumstances of each case, consular and other official missions established in Macao by states which have no formal diplomatic relations with the People's Republic of China may either remain or change to semi-official missions.

States not recognized by the People's Republic of China may only establish non-governmental institutions in the Region.

Chapter VIII Interpretation and Amendment of the Basic Law

Article 143 The power of interpretation of this Law shall be vested in the Standing Committee of the National People's Congress. The Standing Committee of the National People's Congress shall authorize the courts of the Macao Special Administrative Region to interpret on their own, in adjudicating cases, the provisions of this Law which are within the limits of the autonomy of the Region.

The courts of the Macao Special Administrative Region may also interpret other provisions of this Law in adjudicating cases. However, if the courts of the Region, in adjudicating cases, need to interpret the provisions of this Law concerning affairs which are the responsibility of the Central People's Government, or concerning the relationship between the Central Authorities and the Region, and if such interpretation will affect the judgments in the cases, the courts of the Region shall, before making their final judgments which are not appealable, seek an interpretation of the relevant provisions from the Standing Committee of the National People's Congress through the Court of Final Appeal of the Region. When the Standing Committee makes an interpretation of the provisions concerned, the courts of the Region, in applying those provisions, shall follow the interpretation of the Standing Committee. However, judgments previously rendered shall not be affected.

The Standing Committee of the National People's Congress shall consult its Committee for the Basic Law of the Macao Special Administrative Region before giving an interpretation of this Law.

Article 144 The power of amendment of this Law shall be vested in the National People's Congress.

The power to propose bills for amendments to this Law shall be vested in the Standing Committee of the National People's Congress, the State Council, and the Macao Special Administrative Region. Amendment bills from the Macao Special Administrative Region shall be submitted to the National People's Congress by the delegation of the Region to the National People's Congress after obtaining the consent of two-thirds of the deputies of the Region to the National People's Congress, two-thirds of all the members of the Legislative Council of the Region, and the Chief Executive of the Region.

Before a bill for amendment to this Law is put on the agenda of the National People's Congress, the Committee for the Basic Law of the Macao Special Administrative Region shall study it and submit its views.

No amendment to this Law shall contravene the established basic policies of the People's Republic of China regarding Macao.

Chapter IX Supplementary Provisions

Article 145 Upon the establishment of the Macao Special Administrative Region, the laws previously in force in Macao shall be adopted as laws of the Region except for those which the Standing Committee of the National People's Congress declares to be in contravention of this Law. If any laws are later discovered to be in contravention of this Law, they shall be amended or cease to have force in accordance with the provisions of this Law and legal procedure.

Documents, certificates and contracts valid under the laws previously in force in Macao, and the rights and obligations provided for in such documents, certificates or contracts shall continue to be valid and be recognized and protected by the Macao Special Administrative Region, provided that they do not contravene this Law.

The contracts signed by the Portuguese Macao Government whose terms of validity extend beyond 19 December 1999 shall continue to be valid except those which a body authorized by the Central People's Government publicly declares to be inconsistent with the provisions about transitional arrangements contained in the Sino-Portuguese Joint Declaration and which need to be re-examined by the Government of the Macao Special Administrative Region.