1 May 2015
Issue No: 5/2015
Important Deadlines



Submission of Royalty Statement and Sales Report for April 2015 by duty free shops.



Payment of Trade Fee for May 2015



Payment of duty free royalty for April 2015



Payment of withholding tax for April 2015



Submission of BPT Return and payment for 2014. (For those whose accounting period ends on 30 November 2014)



Submission of GST Return for April 2015 and payment of GST.

MIRA introduces online token system

MIRA has introduced an online token system where taxpayers can get the token for MIRA’s services online. This service was launched at the ceremony to open the renovated Taxpayer Service Centre. Speaking at the event, the Guest of Honor, Minister of Finance and Treasury Mr. Abdulla Jihad said that MIRA is an organisation that is continuously striving to provide better service and that this new service would make filing returns and making payments more convenient for taxpayers.

Those who wish to get their service token online can download the QueueBee app and access MIRA’s online token system. To access MIRA’s services on the app, taxpayers would need to scan the QR code for MIRA’s services. This QR code is available on MIRA’s website. When a taxpayer takes a token from the system, the app will display how many people are ahead and ...

Claiming input tax on capital expenditure

Expenditure on acquiring capital assets is an integral part of business development. Depending on the nature of the businesses these investments can vary to large extents. With regards to such investments, MIRA through its business audits have found that some businesses have deducted the GST input claims for major capital expenses in the corresponding taxable period related to that transaction. 

As per section 46 of the GST Regulation input tax value on capital can be deducted in the corresponding period to the t ...

Expenses incurred to generate receipts that have suffered withholding tax

Pursuant to Paragraph (8) of the Tax Ruling TR-2012/B9, expenses incurred in generating receipts which have already suffered Withholding Tax, referred to in Section 10 (d) (8) of the Business Profit Tax Act shall not be deducted when computing a Person’s taxable profits. To make this distinction clear, BPT Return (MIRA 304) form has been modified and the new version 15.1 reflects the following change; added item 25, under Section B

Item no 25: Expenses incurred to generate receipts that have suffered withholding tax

With this change, all expenses incurred towards generating receipts that have suffered Withholding Tax must be explicitly stated in the BPT Return form. 


Tax obligations of the businesses carried out in the atolls

Businesses conducted in the atolls need to adhere to the tax system, similar to those in Male’. In addition to general retail trading, ferrying of people and goods, fishery, masonry and carpentry, agriculture, handicrafts, supply of fuel, etc., are all considered as business activities and need to register with MIRA according to the stipulated rules and regulations.

In addition to business registration, businesses need to register for GST (Goods and Services Tax) separately, if they fulfill the requirement to register. Businesses need to register for GST if their turnover exceeds MVR 1 million in the past 12 months or is expected to exceed MVR 1 million in the following 12 months, or if they have acquired an import license or if they are engaged in a business supplying tourism goods and services. Businesses can register for GST voluntarily even if they d ...

BPT threshold for group companies

According to the Section 7 of the Business profit Tax Act (Law Number 5/2011), BPT is charged at 15% on the taxable profits exceeding MVR500,000 of all companies doing business in Maldives. In any case if the company is a holding company or a subsidiary of a holding company then the tax free threshold must be shared among the group companies equally.

For example if One Pvt Ltd owns 80% of shares in Two Pvt Ltd and 60% in Three Pvt Ltd, then the tax free threshold for the group would be MVR166, 667.

Whether a company is a holding company or a subsidiary company should be determined as per the International Financial Reporting Standards. In this regard, a holding company is a company that controls another company. 

One of the ways a holding company can control another company is to acquire more than half of the voting rights of ...

A valid tax invoice is required to claim input tax

A tax invoice is a business document issued by one registered person to another registered person. A valid Tax invoice issued by a registered person can be identified by 9 (nine) characteristics, i.e. the wordings “Tax Invoice”, name, address and TIN of supplier and recipient of goods and services, invoice number, date of issue, quantity and details of the goods sold or details of the services supplied, value of the goods or services (excluding the amount of tax charged), tax charged on the goods or services and the total value of the goods or services inclusive of tax.

The input tax in relation to goods or services purchased shall not be set-off against the output tax in the event that the taxpayer does not possess a valid tax invoice for the relevant transaction. Input tax ...

Enforcement of Traffic Violation Fines

MIRA has begun enforcing traffic violation charges as a large number of people are defaulting for the payment such fines charged under the Land Transportation Act and Regulations.

From 1 January 2015 onwards, annual fee for vehicles would be collected only after the settlement of all traffic violation fines related to the person or vehicle. In addition, tax clearances would only be issued once all such fines are cleared and enforcement actions would also be taken against persons with dues related to traffic violation. Hence, it is recommended to all taxpayers with such fines, to settle off as soon as possible.