A foreigner detained for attempting to take dollars out of Maldives in a bid to assist in evading paying Remittance Tax

A foreigner was detained at Velana International Airport for attempting to take dollars out of Maldives in a bid to assist some foreigners employed in Maldives to evade paying Remittance Tax.

Remittance Tax is imposed on money transferred out of the Maldives by a foreigner employed in the Maldives,  through a bank or money transfer agency, at a rate of 3% of the amount remitted. Avoidance of payingRemittance Tax and assisting such avoidance is an offence under the Employment Act of the Maldives.

If a person attempts to take out of the Maldives, cash belonging to another foreigner employed in the Maldives, it would be considered as avoidance of remittance tax, and a penalty of an amount equivalent to the amount attempted to take out of the Maldives applies under the Employment Act of the Maldives. Hence, the sum of USD 69,650 was confiscated and taken by the state as fines and taxes owed to the state.

26 Apr 17