Maldives Inland Revenue Authority (MIRA) has reminded local banks to to charge
Remittance Tax on cash withdrawn abroad from a bank account opened in the Maldives by a
foreigner employed in the Maldives.
The government introduced a three percent remittance tax on on expatriate workers in October.
Under the new law, remuneration of all expatriate workers in the Maldives must be deposited in accounts of banks operated locally.
MIRA in an announcement said the last date on which cash can be withdrawn outside the Maldives by a foreigner employed in the Maldives without Remittance Tax being charged was December 31,
2016.
"Hence, all banks are reminded to commence collection of Remittance Tax on withdrawals of
cash abroad from a bank account opened in the Maldives by a foreigner employed in the
Maldives, from 1 January 2017 onwards," the circular read.
According to central bank statistics, around USD400 million are remitted in expat salaries every year. The government expects to generate MVR56 million from remittance tax in 2016.
