Tax Regulation Amendments to Increase Revenue from Foreign Currency by USD 80 Million

Commissioner General of Taxation Hassan Zareer has announced that recent amendments to the Maldives Income Tax Regulations are expected to increase state revenue from foreign currency by an estimated USD 80 million annually.

In an interview with PSM News, Zareer highlighted that while some individuals previously paid income tax in U.S. dollars, contributing approximately USD 40 million annually, the new regulations are designed to significantly boost revenue collection. He estimated that the enhanced rules could secure up to USD 120 million in total revenue.

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Last month, the Maldives Inland Revenue Authority (MIRA) implemented updates to the Income Tax Regulations. Under these changes, individuals earning income in foreign currency must now file tax returns and interim returns in U.S. dollars. Interim payments and final income tax settlements for these earnings will also be required in U.S. dollars.

The amendments further extend to withholding tax returns for non-residents with foreign currency income, employee withholding taxes, and capital gains withholding taxes. Effective from October, these payments and returns must also be submitted in U.S. dollars.