Maldives Inland Revenue Authority (MIRA) has granted opportunity for inactive businesses registered for tax to unregister themselves from the tax registry.
Registration is compulsory if the value of taxable supplies of a business exceed MVR 1 million per annum. However, importers of goods to the Maldives and suppliers of tourism goods and services are required to register even if the value of their supplies do not exceed the MVR 1 million threshold.
According to the Tax Act, registered businesses must submit tax returns even if no transactions are carried out before the given deadline. While failure to do so results in the businesses being fined, MIRA in 2017 lightened the requirements such that the tax registration for sole propriterhsips are no longer required, and filing of BPT returns and audits were lightened for small businesses.
However, several small businesses still struggle with carrying out the requirements despite the ease provided in 2017, and that the authority continues to receive complaints over the issue.
Therefore, all businesses who do not meet the criteria required for registration under the administrative laws can request to de-register themselves by submitting the MIRA106 form to the authority, said MIRA.
Last December, MIRA brought amendments to their 'Enforcement Policy' under which non-compliant businesses are granted a period of 30 days to make overdue payments to MIRA. If the business fails to make payments within the 30-day period, an additional extension of three days will be granted, after which a written warning will be issued. Prior to the amendment, businesses were given a 15-day notice to clear pending accounts.
