President Mohamed Nasheed has ratified the Business Profit Tax Bill after it was passed by parliament on December 30.

The long-awaited Act, which the government contends is vital to the country’s future economic prosperity, includes six chapters setting out a framework and guidelines for the taxing of businesses in the Maldives.

The government will ultimately phase out the US$8 a night bed tax charge on the tourism industry and replace it with a goods and service tax (GST), land rent and business profit tax.

Following the ratification, the Business Profit Tax Act has been published in the government Gazette.