Amendments made to foolproof against remittance tax evasion

Maldives Inland Revenue Authority (MIRA) announces amendments have been made to the regulation to foolproof against evasion of remittance tax.

According to law, salaries of all foreigners working in Maldives needs to be transferred to a bank account registered to them in a bank operating in Maldives. A remittance tax of three percent will be taken from all transfers made abroad by foreign workers, as well as money transfers made from the account while abroad.

MIRA announced that the regulation has been amended so that remittance tax will also be charged on money transfers made abroad by a dependent of a foreign worker or a Maldivian on behalf of a foreign worker.

Remittance tax will also be charged on money transfers made from the bank account of a foreign worker opened in Maldives to any bank account registered to the foreign worker abroad.

In addition to this, remittance tax will also be charged on cash withdrawals made abroad from a prepaid cash card issued to a foreign worker from a bank in Maldives.

MIRA announced fines will be imposed on foreign workers who attempt to evade remittance tax and make illegal money transfers.

The fine amount will be equal to the illegal money transfer amount made.