Maldives President ratifies new tourism and tax laws

Maldives tourism tax foreign currency exchange GST amendments withholding tax Mohamed Muizzu

President Mohamed Muizzu has ratified several legislative amendments aimed at increasing state revenue and regulating foreign currency within the Maldives.

Under new amendments to the Foreign Currency Act, resort operators are now required to exchange 40 percent of their foreign currency earnings through local banks. President Muizzu stated this move is intended to boost the foreign reserves of the Maldives Monetary Authority to support essential public needs and import payments. He defended the mandate, asserting that it would not prevent resorts from paying staff salaries in US dollars or meeting operational costs.

Additionally, amendments to the Goods and Services Tax (GST) Act will now apply to foreign tour operators, travel agents, and offshore booking platforms selling tourism products in the Maldives. By implementing the destination principle, the government expects to generate an additional MVR 1.6 billion in annual revenue, with collection beginning in October.

Finally, the President ratified an amendment to the Income Tax Act that doubles the withholding tax on non-resident contractors from 5 percent to 10 percent. This change is expected to increase annual state revenue by approximately MVR 251 million and aims to eliminate competitive disparities between local businesses and non-resident contractors.

Entities

Maldives · Maldives Monetary Authority · Mohamed Muizzu · People’s Majlis

Claims

What the coverage asserts, and how many sources carry each claim.

[○ 1 SOURCE] GST changes targeting foreign tourism services are expected to generate MVR 1.6 billion in annual state revenue. standard.mv
[○ 1 SOURCE] The withholding tax for non-resident contractors has increased from 5 percent to 10 percent. atolltimes.mv
[○ 1 SOURCE] The increase in non-resident contractor withholding tax is expected to raise state revenue by approximately MVR 251 million annually. atolltimes.mv
[○ 1 SOURCE] The 40 percent exchange mandate will not prevent resort operators from paying staff salaries in US dollars. etruth.mv
[○ 1 SOURCE] Resort operators must exchange 40 percent of their foreign currency revenues through local banks. etruth.mv
[● 3 SOURCES] President Mohamed Muizzu ratified several bills at the President’s Office on Monday. etruth.mv · standard.mv · atolltimes.mv
[○ 1 SOURCE] Amendments to the Goods and Services Tax Act will include foreign tour operators and offshore booking platforms. standard.mv

Sources

Muizzu Defends 40 Percent Dollar Exchange Mandate, Says Resorts Can Easily Pay Staff in Forex [etruth.mv]

12 days ago

President ratifies bill empowering govt to repossess land under council jurisdiction [see.mv]

11 days ago

President ratifies GST changes targeting foreign tour operators and booking platforms - The Standard Maldives [standard.mv]

12 days ago

Non-resident contractor withholding tax rises from 5% to 10% [atolltimes.mv]

12 days ago