A dispute arose between Maldives Bay Pvt Ltd and MIRA with regards to the applicable rate of GST to the supply of certain capital assets (which included sand barges and fire pumps) by Maldives Bay to Sanctuary Sands Maldives Pvt Ltd - the owner of the tourist resort.

This issue of the Tax Alert focuses on the fee on plastic bags.

Our "Year in Review 2020" provides brief summaries of the key legal and tax developments through the year 2020, as the Maldives navigated its way through the COVID-19 pandemic. Some of the issues have also been addressed to in blog posts by our lawyers and tax advisors, and in a variety of our publications.

The First Amendment to the Regulation on Leasing Islands, Lands and Lagoons under Cross-Subsidisation for Tourism Purpose was gazetted on 21 December 2022.

A case which provided further clarity to the principle of restitution for unjust enrichment under the law of equity. The Court further listed the conditions to be fulfilled in order to establish that a party has, in fact, gained an unjust enrichment.

The First Amendment to the Regulation on Leasing Islands, Lands and Lagoons under Cross-Subsidisation for Tourism Purpose was gazetted on 21 December 2022.

On 27 November 2022, the 29th Amendment to the Goods and Services Tax Regulation (Regulation Number 2011/R-43) was published in the Government Gazette.

The Seventh Amendment to the Employment Act (the “Seventh Amendment”), gazetted on 21 September 2022, removed the obligation on employers to pay minimum wage to expatriate employees in accordance with the Minimum Wage Order until a compliance date is announced by the Minister of Economic Development (the “Minister”).

This Advisory guides you through any transitional issues that you may be facing with respect to the application of the correct GST rate - especially for transactions that straddle the effective date of rate change.