Maldives Inland Revenue Authority (MIRA) has advised foreign parties conducting business in the Maldives to register with the entity. In a circular issued by MIRA, it was stated that it has been brought to the organization’s concern that some foreign parties that are liable to register with MIRA under the Maldivian tax laws, have been running business activities in the country without proper registration.
For the purposes of the Business Profit Tax Act, persons that are resident in the Maldives and non-resident persons conducting business activities in the Maldives through a Permanent Establishment, as defined in section 43(e) of that Act, are required to register with MIRA under the Tax Administration Act and fulfil all obligations with respect to the relevant tax laws.
Therefore, MIRA instructed all parties to verify whether or not the foreign party providing its services in the Maldives is registered with MIRA, before appointing such party to perform any form of work in the Maldives. Further to this, please also confirm whether or not such foreign party is registered with MIRA for Goods and Services Tax if the gross value of the service provided by that party is more than MVR 1 million.
Full details are available at the link below:
