Third Amendment to the Green Tax Regulation Published by MIRA
On 25 November 2024, the Maldives Inland Revenue Authority (“MIRA”) has published the Third Amendment to the Green Tax Regulation1 (“Amendment”).
This Amendment stems from the doubling of Green Tax (“GRT”) and other legislative changes introduced via the Fourteenth Amendment to the Tourism Act2 on 5 November 2024.
Key changes
In addition to the doubling of GRT, the updates to the Tourism Act also introduced an exemption from GRT for toddlers under the age of 2, effective from 1 January 2025. The Green Tax Regulation has been updated accordingly with the following key changes applicable to toddlers under the age of 2 years:
Eligibility for exemption
- A toddler is considered under 2 years old and eligible for GRT exemption, if they have not reached their second birthday by the check-in date.
Transitional rules
- For toddlers who are not yet 2 years old by 1 January 2025 but have not checked out by 00:00 hrs on 1 January 2025, they will be deemed to have checked out at 23:59 hrs on 31 December 2024 and checked back in at 00:00 hrs on 1 January 2025.
- This rule ensures that the exemption is provided to toddlers who have not reached 2 years of age by 1 January 2025 even though they were checked-in prior to the rate change.
Record keeping
- Consequent to this change, tourist establishments must now maintain copies of the passports of toddlers who are exempt from GRT. These records are required to confirm the toddler’s age for exemption purposes.
Additionally, the Amendment incorporates the necessary changes to reflect the doubling of GRT rates under the Fourteenth Amendment to the Tourism Act.
Effective Date
This Regulation is effective from 25 November 2024.
