Measures on avoiding payment of Remittance Tax has been published

The first amendment to the remittance tax regulation has been published in the gazette in order to implement measures on avoidance of payment of remittance tax.

 According to the Tax Ruling,  remittances made by a holder of a “dependent visa” that is issued to the dependent of a foreigner employed in the Maldives, or by a Maldivian citizen on behalf of a foreigner employed in the Maldives, or if an employer transfers money to a foreign bank account of a foreigner employed in the Maldives because a local bank account has not been opened, or if the local bank account of the foreigner has been closed following the termination of his employment, the transfer of funds shall be subject to Remittance Tax.

In addition, if a foreigner employed in the Maldives, or the holder of a “dependent visa” that is issued to the dependent of a foreigner employed in the Maldives, or a Maldivian citizen, attempts to take out of the Maldives, cash belonging to another foreigner employed in the Maldives, it shall be considered as a measure to avoid payment of Remittance Tax, and appropriate measure will be taken against such persons.  Under the Employment Act, if attempts are made to evade paying Remittance Tax on funds transferred out of Maldives, a fine equivalent to the amount being transferred will be imposed.

Furthermore, the first amendment of Remittance Tax states that if a foreigner employed in the Maldives withdraws cash using a prepaid cash card issued by a Maldives bank while abroad is subject to Remittance Tax.

Related documents:

· https://www.mira.gov.mv/TaxLegislation/tr-2017-r2-english.pdf

16 Jan 17