Dhiraagu urges shareholders to update tax residency status

Dhiraagu is encouraging their shareholders to take a moment to review and update their tax residency status, helping ensure their dividends are processed correctly in accordance with applicable tax requirements.

Under the Income Tax Act, dividends paid to shareholders who are not tax residents of the Maldives are subject to a 10 percent Non-Resident Withholding Tax in accordance with Section 55(a)(4) of the Act.

In addition, where Dhiraagu is unable to determine that a shareholder is a tax resident of the Maldives at the time of payment, Section 55(c)(1) of the Act requires the company to deduct the applicable withholding tax from the dividend payment.

Dhiraagu is therefore encouraging shareholders to review and update their tax residency status by logging in to the Maldives Securities Depository (MSD) portal or by completing the Shareholder Information Form and emailing it to [email protected].