18 June 2016
Issue No: 6/2016
Important Deadlines

JUN 

12

Payment of Trade Fee for June 2016

JUN 

12

Payment of duty free royalty for May 2016

JUN 

15

Payment of withholding tax for May 2016

JUN 

28

Submission of GST Return for May 2016 and payment of GST.

JUN 

28

Submission of Green Tax Return for May 2016 and payment of Green Tax.

JUN 

30

Submission of Financial Statments of Commercial Banks for 2015

JUN 

30

Payment of tourism land rent for the third quarter of 2016.

JUN 

30

Submission of BPT Return and payment for 2015. (For those whose accounting period ended on 31 December 2015)

JUN 

01

Payment of Trade Fee for August 2016

Commencing collection of Zakat-al-mal by MIRA starting 1 June 2016

Zakat-al-mal will be collected by MIRA starting 1 June 2016. The work carried out by Ministry of Islamic Affairs in the collection of Zakat-al-mal was handed over to MIRA in March with the signing of an MOU between the two authorities.

MIRA offices outside Male’ will also accept Zakat-al-mal collection. Also, Zakat-al-mal will be accepted from the councils in the islands where MIRA offices have not been established. MIRA 510 form must be submitted when making the Zakat payments. This form is available in our website and Taxpayer Service Centre.

It has been decided to collect only Zakat al-mal by MIRA and Fitr Zakat will still be collected by the Ministry of Islamic Affairs. 

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Key points to consider when preparing the BPT return

In comparison to other tax returns, preparing a BPT return entails more work and several specific requirements. It is therefore critical that taxpayers start the preparation of the BPT return well in advance so that they have ample time to fulfil all the requirements diligently. Further, preparation of the BPT return involves tasks such as identifying and preparation of financial statements that must accompany the BPT return, and appointment of an auditor to audit the financial statements if required to. Hence, keeping such tasks to the last minute would make filing the return by the deadline a very difficult task.

Regardless of their revenue, companies and partnerships must submit their BPT return. Individuals must submit BPT return if the revenue of 2015 reached MVR 750,000 or the taxable profit reached MVR 500,000. Individuals must also submit BPT return for 2 ...

Taxpayer’s accounting period must be the period from 1January to 31 December

MIRA has issued a tax ruling (Tax Ruling: TR-2015/B45) requiring all taxpayers to have the accounting from 1 January to 31 December in any year. As per the ruling, taxpayers currently with an odd accounting period are required to request to MIRA in writing to change their accounting period so as to align with the calendar year, by 31 December 2016.

Around 900 taxpayers who are required change the accounting period before the end of 2016 are yet to make the request to MIRA to change the accounting period. Since individuals already have their accounting periods aligned, companies and partnerships need to check whether their accounting period needs to be changed and complete necessary formalities.

When taxpayers with an odd accounting period end their accounting period on 31 December 2016, it resul ...

MIRA conducts customer care training for the front line staff

MIRA has commenced a series of customer trainings aimed at the front line staff of MIRA, to ensure that the staff maintains professionalism when interacting with and providing services to the taxpayers. The trainings, started on 17 May 2016 with 33 staff, are scheduled to last until the end of this year.

Focus of the trainings includes techniques on improving communication skills of the staff, attending taxpayers’ queries promptly and how to become active listeners.

MIRA believes that such trainings will enhance the standard of the services provided by MIRA, and assist in maintaining the image of MIRA as a professional organization. 

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Currency and Exchange Rate to be used for the purpose of BPT

For the purpose of BPT, taxpayers are required to maintain accounting records in their “functional currency”. Functional currency is the currency of the primary economic environment in which taxpayer operates. Transactions in currencies other than functional currency must be recorded using a rate within ±2% of the rate published by the MMA, pertaining to the relevant date. If functional currency is Rufiyaa, financial statements must be prepared in Rufiyaa. If functional currency is USD, financial statements must be prepared in USD. If functional currency is a currency other than Rufiyaa or USD, financial statements may be prepared in either Rufiyaa or USD.

Presentation currency is the currency in which financial statements are presented to MIRA. Presentation currency would differ from functional currency only if functional currency is a currenc ...

Substantive matters are not up for dispute, when enforcement measures are appealed at the Tax Appeal Tribunal: High Court

The High Court of Maldives has ruled that substantive matters are not up for dispute on cases appealed to the Tax Appeal Tribunal where MIRA has taken action to recover tax against a taxpayer who has not followed the stages stipulated in the Tax Administration Act with regard to objecting to a decision in relation to tax made by MIRA.

This judgement was passed on the Tax Appeal Tribunal decision appealed by MIRA. The Tax Appeal Tribunal had passed that GST assessed by MIRA as payable by Bunny Holdings (BVI) Ltd is not payable by the company. The case was filed by Bunny Holdings (BVI) Ltd when MIRA recovered the tax payable by the company by freezing the bank account of the company.

In accordance with the High Court judgement, the Tax Administration Act stipulates the procedure to be followed by ...

Gulf States to introduce VAT

Gulf Corporation Council (GCC) countries have agreed to introduce VAT in 2018 at the rate of 5%. VAT is another name for GST. GCC is an economic union consisting of all Arab states of the Persian Gulf. Its member states are Bahrain, Kuwait, Oman, Qatar...