Maldives Inland Revenue Authority (MIRA) Monday amended the remittance tax regulation to include an anti-avoidance provision.
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.
The new provision mandates 'dependent visa' holders that is issued to the dependent of a foreigner employed in the Maldives to pay the tax.
According to MIRA, a local on behalf of a foreigner employed in the Maldives and employers who transfer money to a foreign bank account of an expat employed in the Maldives because a local bank account has not been opened, or because the local bank account of the foreigner has been closed following contract termination are also subject to the tax.
"Where a foreigner employed in the Maldives, or the holder of a “dependent visa” that is issued to the dependent of a foreigner employed in the Maldives, or a Maldivian citizen, attempts to take out of the Maldives, cash belonging to another foreigner employed in the Maldives, it shall be considered as a measure to avoid payment of Remittance Tax," a MIRA circular read.
In addition an expat withdrawing cash outside the Maldives, using a prepaid cash card issued by
a bank in the Maldives would now be subject to remittance tax.
