Maldives Tax

3005 Words Jul 16th, 2012 13 Pages
Tax in Maldives

Over the few years Maldives economy has grown very much. Various opportunities have been open to investors and small scale business, in Maldives and the income that the government get also has increase in the past years. The tax has also effects many house holds and business. With the changes of laws and regulations there are many new taxes and royalties that are taken in from the public and the business organization. In this essay I am going to highlight the effects of the new tax reform in Maldives. In Maldives the tax administration authority is Maldives Inland Revenue Authority (MIRA). this authority was established as a separate and independent legal entity under the tax administration act which was
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Registration is compulsory if the value of taxable supplies of a business exceed MVR 1 million per annum. However, importers of goods to the Maldives and suppliers of tourism goods and services are required to register even if the value of their supplies do not exceed the MVR 1 million threshold. The Act imposes a GST at the rate of 3.5% from 2 October 2011 to 31 December 2011 and 6% from 1 January 2012 to 31 December 2012. The GST rate on tourism goods and services will increase to 8% from 1 January 2013 onwards. (MIRA 2011)

Business Profit Tax (BPT) BPT is a tax charged, under the Business profit Tax Act (Act Number 5/2011), on the profits of all businesses carried out in Maldives. The Act was published in the Government Gazette on 18 January 2011 and as per the Act, it will commence after 6 months from this date. Companies, partnerships, individuals and all persons who are resident or carrying out business in Maldives would be subject to tax under this Act. In addition, certain payments made by any Person to a non-resident would also be subject to tax under this Act. The tax rates are: Companies, Partnerships and other Persons | 15 percent | Profit from sources outside Maldives | 5 percent | Withholding tax | 10 percent |
(MIRA, 2011)

Tourism Tax Tourism Tax is levied under the Maldives Tourism Act (Act No. 2/99) and administered through the Tourism Tax Regulation. All tourists staying in tourist establishments are obliged to pay

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