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5 clusters · 15 sources · 26 days · First seen 27 days ago · Last updated 2 days ago

Maldives tourism sector regulatory and tax changes

Overview

The Maldives is implementing new measures to regulate and increase revenue from its tourism sector. Initially, a bill was submitted to the People’s Majlis to impose a Goods and Services Tax (GST) on foreign tourism-related businesses, including offshore booking platforms, foreign tour operators, and overseas travel agents. This proposed amendment aims to apply the “destination principle” to the national tax framework, with projections suggesting an annual revenue increase of approximately MVR 1.6 billion. Following this, the government announced it would pursue tourism leaseholders for unpaid rent, fines, and penalties under the Tourism Act. On August 31, 2026, President Mohamed Muizzu ratified several legislative amendments to formalize these fiscal and regulatory shifts. Under new amendments to the Foreign Currency Act, resort operators must now exchange 40 percent of their foreign currency earnings through local banks to boost the Maldives Monetary Authority’s foreign reserves. The ratified GST Act amendments, which apply to foreign tour operators, travel agents, and offshore booking platforms, are scheduled to begin collection in October. Furthermore, an amendment to the Income Tax Act doubles the withholding tax on non-resident contractors from 5 percent to 10 percent. On September 8, 2026, industry concerns intensified regarding the implementation of these reforms. European organizations, such as ECTAA, have expressed alarm over the short timeframe and potential administrative burdens, calling for delays and clearer transition rules. Locally, the Maldives Association of Tourism Industry (MATI) has requested government discussions. MATI Chairman Hussain Afeef noted that resort operators have offered to open financial records to demonstrate how the 40 percent currency conversion requirement might impact operational costs and imports. On September 10, 2026, Tourism Minister Mohamed Ameen confirmed that unpaid resort rent and fines owed to the state have exceeded $90 million, with some debts dating back to 2013.

Entities

Maldives · Maldives Inland Revenue Authority · People's Majlis · Maldives Association of Tourism Industry · Taiwan Straits Tourism Development Association

Claims

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

[● 3 SOURCES] President Mohamed Muizzu ratified several bills at the President’s Office on Monday. etruth.mv · standard.mv · atolltimes.mv
[○ 1 SOURCE] Resort operators must exchange 40 percent of their foreign currency revenues through local banks. etruth.mv
[○ 1 SOURCE] The 40 percent exchange mandate will not prevent resort operators from paying staff salaries in US dollars. etruth.mv
[○ 1 SOURCE] Amendments to the Goods and Services Tax Act will include foreign tour operators and offshore booking platforms. standard.mv
[○ 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

Timeline

2 days ago

[BUSINESS] 7 sources
Maldives implements new regulations to recover $90 million in unpaid resort debts
The Maldives is implementing strict new regulations to recover over $90 million in unpaid resort rents and fines, while simultaneously seeing a recovery in tourism and new airline arrivals.
4 days ago

[BUSINESS] 7 sources
Maldives tourism industry protests new tax and forex rules
Maldivian tourism operators are calling for delays to a new 17 percent tax on overseas travel agents and a mandate requiring resorts to convert 40 percent of US dollar revenue through local banks.
12 days ago

[BUSINESS] 4 sources
Maldives President ratifies new tourism and tax laws
Maldives President Mohamed Muizzu ratified new laws mandating resorts exchange 40% of foreign earnings, expanding GST to offshore booking platforms, and doubling withholding tax for non-resident contractors.
21 days ago

[BUSINESS] 2 sources
Maldives Government to pursue tourism leaseholders over unpaid rent
The Maldives Government is initiating enforcement actions against tourism leaseholders for unpaid rent, fines, and penalties under the Tourism Act.
27 days ago

[BUSINESS] 2 sources
Maldives proposes GST on foreign travel agents and booking platforms
The Maldives is considering a bill to impose GST on foreign tour operators, travel agents, and offshore booking platforms to capture tax revenue from tourism transactions conducted through overseas providers.

Sources

atolltimes.mv · aviation.direct · corporatemaldives.com · etruth.mv · foodticker.co.nz · hurihaa.mv · psmnews.mv · reisbizz.nl · see.mv · standard.mv · thepress.mv · tourismticker.com · tunisie-societe.com · wicnews.com · world-today-news.com

This summary has been updated 4 times: see revision history