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…

Ruling G47 Explains Types of Feminine Sanitary Products

On 10 December 2018, Tax Ruling G47 was published in the government gazette which amends Section 40 of the Goods and Services Tax Regulation. Following the fifth amendment to the GST Act on 3 December 2018, sanitary napkins, tampons, menstrual cups…

Feminine Sanitary Products Zero Rated

On 3 December 2018, the fifth amendment to the Goods and Services Tax Act was published in the Gazette, which introduced feminine sanitary products to the zero-rated schedule. Effective from 3 December 2018, all Sanitary napkins, tampons, menstrual…

Channel Licensing Fees Not Subject to WHT

On 24 October 2018, the Tax Appeal Tribunal decided, by way of majority decision, in favor of the Appellant, Medianet Pvt Ltd - the largest cable TV operator in Maldives - and set an important precedent with respect to the interpretation of Section 6(a)(1)…

Basic Tax and Legal Considerations When Buying a Business

by Ali Naeem, Counsel Buying or selling a business is a complex transaction with many tax and legal variables to consider before you start negotiations and close the deal. Although the purchase terms are not solely driven by tax considerations, it…

Interest Paid to Lease Finance Companies Fully Deductible

On 8 November, the MIRA issued Tax Ruling B67 which deals with approved banks and financial institutions for BPT purposes. The new ruling, which supersedes Tax Ruling B2 which was published back on 20 March 2012, now considers Housing Finance Companies,…

New Conditions on Releasing Frozen Bank Accounts of Taxpayers

On 6 November, the MIRA published the second amendment to its Enforcement Policy, amending bank account release conditions, and introduced a new schedule for instalment payments granted to small businesses to pay outstanding taxes and fines. The amendment…

MIRA Audit Assessment Nullified on Violation of Procedure

On 23 October 2018, a three member bench of the Tax Appeal Tribunal unanimously decided in favor of a taxpayer citing MIRA’s failure to follow the procedure stipulated in law when collecting information for an assessment. The Appellant, Abdulla…

Filing Tax Appeals and Objections: Important Considerations

by Ali Naeem, Counsel The Tax Administration Act (TAA) lays out specific procedures to go about when you disagree with a decision made by the Maldives Inland Revenue Authority. The decisions that affect your business or tax liability are twofold -…

Implications of Tax Ruling B65 on Lawyers

by Ali Naeem, Partner   It is an often debated issue whether freelance lawyers, advisors or consultants who work for law firms should be considered as carrying out a “business” as defined in the Business Profit Tax Act. The answer to this…

Foreign Investment Procedure & Considerations

Foreign enterprises looking to invest in the Maldives are required to register their enterprise in the Maldives prior to commencing operations. Registering a foreign enterprise entails following a set of procedural rules, in the correct order, and complying…