Cash Declaration Limit Changed

The Maldives Monetary Authority, on 17 January 2019, published the first amendment to the Regulation on Cross Border Currency Declaration Amount. The changes introduced now require passengers travelling with USD 20,000 or more, and are travelling…

Construction Act Ratified

On 23 April 2017, the Construction Act was published in the Maldives gazette, which sets out the standards and parameters to be followed by all actors in the industry. The Act gives the Minister – responsible for enforcement of construction sector…

Changes Made to Grant of Rights Regulation

The Ministry of Tourism, on 26 April 2017, published the 2nd Amendment to Regulation Number 2010/R-14 (Grant of Rights – land and islands leased for tourism purposes) which amends Section 29 of the regulation. The section concerns debt clearance of…

Civil Court has Jurisdiction to Enforce Arbitral Award

The Maldives High Court, on 20 April 2017, quashed the Civil Court’s decision that the Civil Court can only proceed with enforcement of the arbitral award after the High Court makes a decision regarding the award. The initial case, which was filed…

BPT Return Exemption for Individuals and Deemed Partnerships

The Maldives Inland Revenue Authority has amended the Business Profit Tax Regulation exempting registered individuals and deemed partnerships who fulfill certain conditions from submitting a BPT return. Pursuant to Tax Ruling B-58, an individual or…

Micro Businesses Not Required to Submit Auditor’s Report

The Maldives Inland Revenue Authority has brought an amendment to the Business Profit Tax Regulation exempting micro businesses from submitting an auditor’s report with their BPT Return. Pursuant to Tax Ruling B-57, a micro business, which is categorically…

Goods Imported on Behalf of a Third Party Subject to GST

The MIRA has published a circular concerning the GST implications for businesses that import goods on behalf of a third party. The circular reminds GST registered businesses that importing goods on behalf of a third party shall be considered as a sale…

Agoda payments now subject to WHT

Maldives Inland Revenue Authority has issued a circular instructing taxpayers to pay withholding tax on payments made to all online travel agencies (OTAs), regardless of the arrangement agreed with the OTAs. As per the circular, the new rule comes into…

High Court Confirms TAT Ruling on Third Party Payments

The High Court of Maldives has upheld the Tax Appeal Tribunal’s decision on a case which focused on the subjectivity of withholding tax on payments made by a person other than the taxpayer. On 23 November 2016, the High Court of Maldives upheld…

Tax Ruling issued on the GST treatment of imported goods

A Tax Ruling has been issued by the Maldives Inland Revenue Authority (MIRA) on 8 August 2016 clarifying the GST treatment of imported goods. The Ruling explains the GST treatment when goods are imported to Maldives under an import license (regardless…