MIRA Reveals Green Tax Adjustments, Rates Set to Double in 2025

The Maldives Inland Revenue Authority (MIRA) has announced changes to the Green Tax rates, which will take effect on 1 January 2025. As per the 14th amendment to the Maldives Tourism Act, the new rates will apply to all tourist establishments, including resorts, guesthouses, and vessels.

Under the revised rates, Green Tax for most establishments will double. Resorts, integrated tourist resorts, resort hotels, tourist guesthouses with more than 50 rooms, and vessels will now charge USD 12 per guest per night. Meanwhile, guesthouses operating with 50 or fewer rooms on inhabited islands will charge USD 6 per guest per night​.

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The updated regulations also include provisions for children under two years of age, exempting them from the tax starting 1 January. For stays that overlap into the new year, the applicable tax rate will depend on the first 12 hours of the 24-hour block. If the first half of that block falls into January, the new rates will apply​.

For example, a guest who checks in on 31 December 2024 and stays into January will see the new tax rates applied to the part of their stay that extends beyond the new year. MIRA has outlined specific scenarios for tax calculation, ensuring clarity for both establishments and guests​.

This revision is expected to increase government revenue while supporting environmental initiatives across the Maldives. The Green Tax plays a vital role in funding projects to protect the country’s fragile ecosystems, which are vital to its tourism industry.

MIRA has urged all relevant establishments to ensure compliance with the updated requirements, including maintaining accurate records, particularly for children under the age of two. Additional administrative guidelines are included in the third amendment to the Green Tax Regulation​.

The increase reflects the government’s broader efforts to strengthen environmental sustainability while aligning with the country’s fiscal objectives.