MIRA decides not to audit businesses with incomes of less than 5 million Rufiyaa

Maldives Inland Revenue Authority (MIRA) has said that it will not audit businesses with incomes of less than 5 million Rufiyaa.

MIRA said in a tax ruling issued last month that businesses with incomes of less than 5 million Rufiyaa do not have to submit audit reports when they submit their financial statements.

MIRA said that the purpose of enforcing this change via a tax ruling is to protect the rights of taxpayers and assist businesses with tackling their challenges.

MIRA has also decided, in order to assist small businesses, to allow them to use ‘cash basis’ instead of ‘accrual basis’ when preparing their financial statements. MIRA said that if they choose cash basis, the only documents they would have to submit with the tax statement are the income statement and notes related to the income statement.

The new tax ruling also includes details on how financial statements should be presented by tax payers, how to appoint auditors, and the standards that apply when registering auditors with MIRA.

MIRA said that the registrations of auditors under C and D categories will now become void, and that new registration certificates will be issued to auditors that request re-registration.