Remittance Tax becomes effective from 1 October 2016

The Maldives Inland Revenue Authority (MIRA) has stated that Remittance Tax on money transferred out of the Maldives by foreign employees falling under the “work visa category” became effective from 1 October 2016. In this regard, remittances by foreign employees working in Maldives with a work visa or foreign workers who are not allowed to work in Maldives without a work visa would be subject to Remittance Tax at the rate of 3%. According to the Fifth Amendment to the Employment Act ratified on 25 August 2016, employers of foreign employees with a work visa to work in the Maldives should open a bank account in Maldives in the employees’ name before 25 November 2016 and thereafter deposit the employees’ salary to the bank account only. In addition, tax on remittances by foreign employees must be collected and paid to MIRA by banks and money transfer agencies. Activities aimed at foreigners and businesses are being organized to raise awareness on Remittance Tax. In this regard, MIRA staff has visited numerous shops in Male’ and atolls and provided information related to Remittance Tax.

01 Oct 16