Tourism Land Rent

Revenue Code:125003

General Information

Tourism Land Rent in Maldives is payable under the Second Amendment to the Maldives Tourism Act (Act No. 20/2010). Tourism land rent is based on the land area of islands and plots of land leased out for the purpose of developing and operating tourist establishments.

Registration

All tourist establishments that are required to pay land rent would be registered with the MIRA for land rent purposes once they sign the agreement with the Ministry of Tourism, Arts and Culture.

Deadlines

Quarterly rent must be paid before the commencement of the quarter. The four quarters are January – March, April – June, July – September and October – December.

Fines/ Penalties

If land rent is not paid before the commencement of the quarter, a fine of 0.5% of the outstanding balance will be charged for each day of delay. The revenue code for any fine related to Tourism Land Rent is 126001 (Fine – Breach of Law).

Relevant Acts and Regulations

Second Amendment to the Maldives Tourism Act

Maldives Tourism Act

Regulation Governing Payment of Land Rent by Tourist Establishments

First Amendment to the Regulation Governing Payment of Land Rent by Tourist Establishments

Bank Profit Tax

Revenue Code:113005

General Information

Tax on profits of banks operating in the Maldives is levied under the Bank Profit Tax Act (Act No. 9/85) and administered through the Bank Profit Tax Regulation.

Registration

For Bank Profit Tax purposes, all commercial banks operating in the Maldives would be registered with the MIRA once they are granted with the license to operate by the Maldives Monetary Authority.

Reporting

All commercial banks operating in the Maldives are required to submit to the MIRA a copy of their audited financial statements and attachments thereto by 30th June of the year following the end of the year of assessment.

Payment

All commercial banks must pay the provisional tax due based on their own computations by 31st July of the year following the end of a year of assessment without any request being made by the MIRA. All the commercial banks must pay 25% of their taxable profits. Any additional tax levied subsequent to an assessment by the MIRA would be communicated to the bank, and the bank must pay the additional tax within 30 days. If the assessment by the MIRA found that a refund is due to the bank, the excess payment shall be adjusted by the bank against its future tax liabilities under the Act.

Deadlines

Audited financial statements and attachments thereto shall be submitted by 30th June of the following year. Provisional tax shall be paid by 31st July of the following year.

Fines/ Penalties

If any tax, including the provisional tax, is not paid within the prescribed time, the bank shall pay interest at the rate of 2% (two percent) per month on the amount of such tax due, subject to a maximum of 50% (fifty percent) thereof. The revenue code for any fine related to Bank Profit Tax is 126001 (Fine – Breach of Law).

Relevant Acts and Regulations

Bank Profit Tax Act

Bank Profit Tax Regulation

Duty Free Royalty

Revenue Code:118001

General Information

Duty Free Royalty is levied under the Act Governing Duty Free Areas in the Maldives (Act No. 9/81). All duty free shops in the Maldives are liable to pay a monthly royalty calculated as a percentage of sales. Royalty percentages are stipulated in the Regulation Governing Duty Free Businesses in the Maldives.

Registration

All parties wishing to conduct duty free businesses in the Maldives shall register with the Ministry of Economic Development and obtain a license in respect of each duty free shop. For royalty purposes, duty free shops would be registered with the MIRA once they are granted with the license to operate by the Ministry.

Reporting

All duty free shops are required to submit to the MIRA the following documents according to the formats prescribed by the MIRA.

1- Monthly Sales Report - by 10th of the following month.

2- Monthly Royalty Statement - by 10th of the following month.

3- Quarterly Inventory Statement - by 15th day of the month following that quarter.

4- Copy of an audited annual Profit and Loss Statement within 90 Days after each Calendar year

Deadlines

Payment for each month shall be paid by the 10th day of the subsequent month.

Fines/ Penalties

There is no specific fine for non-payment or late payment. However, the Ministry of Economic Development has the right to levy a fine between MVR1,000 and MVR100,000 for non-compliance of duty free regulations.

Relevant Acts and Regulations

Act Governing Duty Free Areas in the Maldives

Regulation Governing Duty Free Businesses in the Maldives

Foreign Investment Royalty

Revenue Code:118002

General Information

Foreign Investment Royalty is levied under the Foreign Investment Act (Act No. 25/79). All businesses registered as foreign investments with the Ministry of Economic Development are liable to pay an annual royalty based on the provisions of the agreement made between the Ministry and the investor.

Registration

All foreign investments would be registered with the MIRA once they are granted with the license to operate by the Ministry of Economic Development.

Reporting

There is no standard reporting framework or format required of foreign investments.

Deadlines

Deadline for the payment of foreign investment royalty is stipulated in the agreement.

Fines/ Penalties

Fines or penalties levied upon non-payment or late payment of royalty depends on the provisions of the agreement. The revenue code for any fine related to Foreign Investment Royalty is 126003 (Fine – Breach of Agreement).

Relevant Acts and Regulations

Foreign Investment Act

Foreign Investment Regulation

Fuel Re-Export Royalty

Revenue Code:118007

General Information

Fuel Re-Export Royalty is levied under the Export Import Act (Act No. 31/79).

Registration

All parties carrying out fuel re-export business in the Maldives would be registered with the MIRA once they are granted with the license by the Ministry of Economic Development.

Reporting

A monthly royalty statement shall be submitted to the MIRA by the deadline mentioned in agreement made between the Ministry of Economic Development and the licenses.

Deadlines

Deadline of payment of this royalty will be mentioned in the above mentioned agreement with the licensee and the Ministry of Economic Development.

Fines/ Penalties

If the royalty due is not paid or a bank guarantee is not submitted by the deadline, a period of 10 days will be granted to settle the due amount with a fine of 0.5% of the amount due. If the royalty and fine remains unpaid by the end of the 10 day period, the Government has the right to take action in accordance with the agreement.

Relevant Acts and Regulations

Export Import Act

Re-Export Royalty

Revenue Code:118008

General Information

Re-Export Royalty is levied under the Export Import Act (Act No. 31/79). Royalty is based on the FOB value of exported goods.

Registration

All parties carrying out re-export businesses in the Maldives would be registered with the MIRA once they are granted with the license by the Ministry of Economic Development.

Reporting

A monthly royalty statement shall be submitted to the MIRA in the prescribed format by the 10th day of the subsequent month. The statement must be submitted along with approved invoices from the Maldives Customs Service. These invoices must be in sequential order.

Deadlines

Payment for each month shall be paid by the 15th day of the subsequent month. If the licensee is unable to make the payment, a bank guarantee in favour of the Government of Maldives, undertaking to pay all dues to the Government on account of re-export royalty, shall be furnished.

Fines/ Penalties

If the royalty due is not paid or a bank guarantee is not submitted by the deadline, a period of 10 days will be granted to settle the due amount with a fine of 0.5% of the amount due. If the royalty and fine remains unpaid by the end of the 10 day period, the Government has the right to take action in accordance with the agreement.

Relevant Acts and Regulations

Export Import Act

Company Annual Fee

Revenue Code:121001

General Information

The Company Annual Fee is levied under Law No.10/96 on all public and private companies registered at the Ministry of Economic Development.

Payment

The Company Annual Fee is levied under Law No.10/96 on all public and private companies registered at the Ministry of Economic Development.

A fixed amount of Rufiyaa 10,000/- is to be paid by all public companies and Rufiyaa 2,000/- is to be paid by all private companies. This annual fee is payable by all companies, regardless of the time of the year the company was registered.

Deadline

Company annual fee for each year should be paid by the end March of that year.

Information required in making payment

The company registration certificate or the company name of the owner and registration number or Taxpayer Identification Number (TIN) will be required when making payments.

Fines/Penalties

A fine is charged if a company fails to pay the company annual fee by end March. If the fee is paid before the end of April, a fine of Rufiyaa 1,000/- is charged. Failing this, a fine of MVR 2500/- is charged if the fee is paid after the month of April.

Vehicle Fee

Revenue Code:123014

General Information

Vehicle fee is levied under the Law No. 5/2009 on every vehicle operated by an engine that is registered at the Ministry of Transport and Communication. This yearly fee is based on the engine capacity of the vehicle.

Fee amount

Following are the vehicle types, engine capacity and respective annual fees.

Type of Vehicle Engine Capacity Annual Fee
Motor Cycle, Scooter Less than 50 cc Rufiyaa 180/-
Motor Cycle, Scooter Equal to or more than 50 cc, but less than 100 cc Rufiyaa 360/-
Motor Cycle, Scooter Equal to or more than 100 cc, but less than 150 cc Rufiyaa 648/-
Motor Cycle, Scooter Equal to or more than 150 cc, but less than 200 cc Rufiyaa 1152/-
Motor Cycle, Scooter Equal to or more than 200 cc, but less than 400 cc Rufiyaa 3240/-
Motor Cycle, Scooter More than 400 cc Rufiyaa 4320/-
Car, Van, Jeep (Others) Less than 1000 cc Rufiyaa 2160/-
Car, Van, Jeep (Others) Equal to or more than 1000 cc, but less than 1500 cc Rufiyaa 2808/-
Car, Van, Jeep (Others) Equal to or more than 1500 cc, but less than 2000 cc Rufiyaa 3672/-
Car, Van, Jeep (Others) More than 2000 cc Rufiyaa 5670/-
Lorry, Tractor, Pickup, Forklift, Crane (Others) Less than 2 tonnes Rufiyaa 1800/-
Lorry, Tractor, Pickup, Forklift, Crane (Others) Equal to or more than 2 tonnes, but less than 5 tonnes Rufiyaa 5000/-
Lorry, Tractor, Pickup, Forklift, Crane (Others) More than 5 tonnes Rufiyaa 7500/-

Making payment

When registering a vehicle for the first time, vehicle fee must be paid before the end of the month of registration. This payment will be collected for one year from the month of registration. Payment should be made from the month of registration, regardless of the date on which it was registered. Vehicle fee can be paid for more than one year. In addition to MIRA, vehicle fee can also be paid to all Atoll Councils.

Information needed to make payment

The last payment receipt, or vehicle registry, or the name and registration number of the vehicle, or the Taxpayer Identification Number (TIN) will be required.

Annual Fee Sticker

An annual fee sticker will be issued when vehicle fee is paid. This sticker will have the date by which the next vehicle fee should be paid. If lost, a new sticker will be issued with a fine of Rufiyaa 20/-, when registration documents are brought to MIRA.

Vessel Fee

General Information

Vessel fee is levied pursuant to the Regulation on Registration of Local Vessels (Regulation Number 2016/R-6) on every vessel that is registered at the Transport Authority. This yearly fee is based on the length of the vessel and the classification to which it belongs.

Classification of Vessels

Classifications of vessels have changed as follows, effective 31 January 2016 pursuant to the Regulation on Registration of Local Vessels:

Code 1: Fishing Vessels
Code 2: Vessels for transportation of passengers
Code 3: Vessels for transportation of goods
Code 4: Vessels for transportation of passengers and goods
Code 5: Vessels for sea sports activities
Code 6: Vessels for personal use
Code 7: Vessels for other uses
Code 8: Oil tankers
Code 9: House boat, Floating restaurant (Vessels with 1- 50 rooms will be considered as floating restaurants)
Code 10: Safari vessels
Code 11: Tugboat
Code 12: Luxury vessels
Code 13: Bareboat
Code 14: Submarine
Code 15: Floating hotels (Vessels with 51 rooms or more will be considered as floating hotels)
Code 16: Landing craft
Code 17: Pontoon (Barge)

As some of the fee codes have been changed under the new regulation, vessel owners need to renew their Vessel Registration before making the next annual fee payment to MIRA. The first annual fee payment after re-registration is payable to Transport Authority.

Fee amount

Following are the vehicle types, engine capacity and respective annual fees.

Codes 1,2,3,4 and 5 -

Length of vessel Fee
Less than 3 meters MVR 500
Equal to or more than 3 meters, but less than 6 meters MVR 1,000
Equal to or more than 6 meters, but less than 9 meters MVR 1,500
Equal to or more than 9 meters, but less than 12 meters MVR 3,000
Equal to or more than 12 meters, but less than 15 meters MVR 3,500
Equal to or more than 15 meters, but less than 20 meters MVR 4,500
Equal to or more than 20 meters, but less than 30 meters MVR 7,000
Equal to or more than 30 meters, but equal to or less than 40 meters MVR 10,000
For each additional meter exceeding 40 meters or part thereof MVR 100

Codes 6,7 and 17 -

Length of vessel Fee
Equal to or less than 12 meters MVR 6,500
For each additional meter exceeding 12 meters or part thereof MVR 150

Codes 8 and 16 -

Length of vessel Fee
Equal to or less than 12 meters MVR 10,000
For each additional meter exceeding 12 meters or part thereof MVR 200

Code 9 -

Length of vessel Fee
Equal to or less than 12 meters MVR 15,000
For each additional meter exceeding 12 meters or part thereof MVR 200

Code 10, 11 and 14 –

Length of vessel Fee
Equal to or less than 12 meters MVR 15,000
For each additional meter exceeding 12 meters or part thereof MVR 250

Code 12 –

Length of vessel Fee
Less than 24 meters US$ 3,500
Equal to or more than 24 meters US$ 5,000

Making payment

Vessel fee payment will be collected for one year from the month of registration. Vessel fee can also be paid to all Atoll Councils in addition to MIRA.

Information needed to make payment

The vessel registry, or the name and registration number of the vessel, or the Taxpayer Identification Number (TIN) will be required. You must complete MIRA 404 form when making the payment.

Fine/Penalties

Vessel fee must be paid before the end of the month of registration. If the vessel fee is not paid 6 months from the deadline, a fine of MVR 1,500 will be imposed. Such vessels can only provide services after paying the amount of fine and unpaid annual fees.