Tax authority introduces new measures to avoid remittance tax evasion
Overseas money transfers made by either a dependent of a foreign worker or a Maldivian on behalf of the worker will now be subject to the controversial three percent remittance tax. A fine equal to the amount of money remitted will be imposed for tax evasion.
17 Jan 2017, 9:00 AM
The Maldives Inland Revenue Authority has introduced new measures to prevent avoidance of a controversial remittance tax imposed on money transferred out of the Maldives by foreign workers.
According to amendments made Monday to the remittance tax regulation, transfers made by either a dependent of the foreign worker or a Maldivian on behalf of the worker will be subject to the tax.
Money transferred by an employer to the foreign bank account of a worker will not be exempt from 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 […],” reads the anti-avoidance provision.
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