Section 7 of the Transfer Pricing Regulation (Regulation Number 2020/R-43) exempts the applicable entity from preparing transfer pricing documents for loan transactions undertaken with an associated party, if the loan amount does not exceed MVR 15 million, and the following indicative margin is applied.
|Associated party loan not exceeding MVR 15 million obtained or provided during the period||Indicative Margin|
|1 January 2020 to 31 December 2020||+1%|
|1 January 2021 to 31 December 2021||+1%|
|1 January 2022 to 31 December 2022||+1%|
|1 January 2023 to 31 December 2023||+1%|
If a taxpayer chooses to apply the indicative margin, the rate used should be the indicative policy rate published by the Maldives Monetary Authority plus the indicative margin above.