CTL Strategies ranked in Chambers Global Guide 2024
CTL Strategies has been ranked in the Chambers Global Guide 2024, published by Chambers and Partners.
The new edition of the Global Guide highlighted CTL for its considerable market respect in tax matters, and demonstrating strength in litigation and corporate services. Among responses received from interviewees, Chamber and Partners quoted that the firm is “able to handle complex matters and provide unbiased legal advice.”
Chambers and Partners is an independent research firm that operates in 200 jurisdictions and is commonly referred to as the “gold standard” in the legal profession. Chambers and Partners publishes rankings and information on the world’s top lawyers and law firms. In-depth interviews with lawyers, in-house counsel for clients, and independent experts were used to compile the rankings.
Tax Rates Increased Following Ratification of New Amendments
The rates for the Tourism Goods and Services Tax (“TGST”), Green Tax (“GRT”), and Airport Taxes and Fees have been increased, following the ratification of several key amendments today, 5 November 2024. These include:
This is part of the government’s fiscal strategy aimed at reducing budget deficits and boosting foreign currency inflows. These changes are expected to impact both businesses and travellers across the tourism industry.
The new rates are set to be implemented with varying effective dates for each tax type. Further details on the changes introduced via the amendments, including the effective dates and changes to the tax rates for each tax type is outlined below.
Tourism Sector Goods and Services Tax
Starting from 1 July 2025, the TGST rate will increase from 16% to 17%. A transitional period of 7 months is provided giving some time for businesses operating in the tourism sector to prepare for the rate change and address any potential impacts.
(1 January 2023 – 30 June 2025)
(Effective from 1 July 2025)
In addition to the above, the amendment now allows not only staff shops but also staff cafes that cater exclusively to employees in tourist establishments to register for general sector GST instead of TGST. Previously, this exemption applied only to staff shops, while all other facilities and places in tourist establishments were required to register for TGST.
Green Tax
The Fourteenth Amendment to the Tourism Act introduces changes to the GRT rates, effective 1 January 2025. The updated rates are as follows:
Additionally, effective from 1 January 2025 an exemption has also been introduced for infants under the age of 2, who will no longer be subject to GRT.
Airport Taxes and Fees
Departure Tax
Departure Tax is levied on passengers4 departing the Maldives based on travel class. Following changes are brought to departure tax rates, which is set to come in effect from 1 December 2024 onwards.
30 Nov 2024
1 Dec 2024
30 Nov 2024
1 Dec 2024
Airport Development Fee (“ADF”)
ADF is collected from passengers departing from Maldives from Velana International Airport. Following changes are brought to ADF rates which are also set to come in effect from 1 December 2024 onwards.
30 Nov 2024
1 Dec 2024
30 Nov 2024
1 Dec 2024
It is notable that ADF and Departure Tax rates for Maldivian passengers traveling in economy class will remain unchanged.
Additionally, the amendment introduces provisions for reclaiming any excess or incorrectly collected airport taxes and fees paid to the Maldives Inland Revenue Authority (MIRA) where these amounts are later refunded to the passenger.
Accompanying Regulations
The necessary amendments to the respective regulations accompanying the acts are to be gazetted within 30 days of the effective date of the amendments.
Effective Date
The effective date of the above outlined amendments are 5 November 2024.
Private Companies Regulation
The Private Companies Regulation (the “Regulation”) formulated by the Ministry of Economic Development and Trade under the Companies Act (Act Number 7/2023) was published and came into effect on 10th October 2024.
The Regulation details compliance requirements included in the Companies Act applicable to private companies in Maldives.
This Client Advisory summarises the significant provisions introduced in the Regulation.
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