This ruling is issued pursuant to the authority granted under Section 84 of the Tax Administration Act (Law Number 3/2010) as amended by Law Number 14/2011. Unless otherwise stated, all references to the Act are to the Business Profit Tax Act (Law Number 5/2011), and all references to the Regulation are to the Business Profit Tax Regulation (Regulation Number 2011/R-35) as amended. This ruling is legally binding.

Introduction

1. This ruling clarifies section 4 of the Act.

2. Section 4 of the Act states:

(a) Except as otherwise provided by this Act, tax for any tax year shall be charged on the taxable profits of that year of any Person, not being a company or a partnership, carrying on the whole or any part of a business or businesses in Maldives, and shall be charged in the name of that Person.

Ruling

3. Persons other than companies and partnerships, which carry on business in the Maldives shall pay Business Profit Tax only in respect of profits of businesses carried on by that Person in the Maldives, i.e. such Person shall not be required to pay Business Profit Tax in respect of profits of businesses carried on by that Person outside the Maldives.

Date of Effect

4. This ruling shall have effect from its date of issue.