The Maldives on Monday amended the Remittance Tax regulations to penalise individuals that acts as mediums to transfer money abroad for expatriate workers with the intention of avoiding Remittance Tax.
According to the amendment publicised by Maldives Inland Revenue Authority (MIRA), any individual carrying money abroad on behalf of an expatriate worker must pay the due Remittance Tax. Such individuals also include dependents of the expatriate and locals.
The amendment further states that Remittance Tax will be charged from any money transferred by the employer to an overseas bank account of the expatriate, in circumstances where the expatriate does not own an account in a bank of the Maldives.
Any individual that attempts to carry an expatriate’s money out of the country without paying Remittance Tax will be penalised the same amount they were carrying.
MIRA had also introduced another amendment to the regulations on Remittance Tax earlier this month, stating that Remittance Tax will also be charged from cash withdrawn by expatriates from overseas banks via a Maldivian bank account.
The Maldives implemented a Remittance Tax of three percent last October in a move to increase state revenue. The government had received MVR 14.6 million last year as Remittance Tax, according to MIRA’s official statistics.
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