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.
MIRA Publishes New Income Tax Guide on Director’s Current Account Debit Balances
Directors of a company are statutorily classified as employees for income tax purposes. As a result, all forms of compensation including benefits in kind provided to directors are considered as part of taxable remuneration that must be included in computing Employee Withholding Tax (“EWT”).
Consequently, given the frequent financial interactions between companies and their directors, on 16 March 2025, the Maldives Inland Revenue Authority (“MIRA”) published an Income Tax Guide on Director’s Current Account Debit Balances (the “Guide”).
This Guide aims to clarify the tax implications associated with various financial transactions involving companies and their directors which is summarised in the below table.
(loan exemption criteria is further detailed below).
Otherwise, they are classified as a direct benefit of directors, contributing to the overall remuneration subject to EWT.
An interest benefit also should be calculated at the ordinary market rate up to the point of waiver and regarded as a taxable benefit.
Loan Exemption Criteria
The Income Tax Act grants an exemption from recognising interest benefit on loans or advances given by a company to its employees under the below conditions:
Importantly, this exemption will cease to apply if there is more than one such loan issued at any given time.
The Guide emphasises that companies claiming the loan interest exemption must maintain records clearly outlining the terms of the loan, including repayment schedules and loan amount.
Failure to provide adequate supporting documentation will result in the interest benefit being treated as taxable income and included in the director’s remuneration.
The Guide also clarifies that each loan or advance will be evaluated individually to assess whether it satisfies the exemption criteria and only one such loan can be outstanding to the director at any given time to qualify for the exemption.
Overview of the Maldives-Bangladesh DTA
Cross-border taxation presents a complex interplay of factors that can create challenges for individuals and businesses operating outside of their resident states. These challenges arise from differing domestic laws, which may lead to overlaps or gaps in tax obligations.
The primary goal of a Double Tax Avoidance Agreement (“DTA”) is to address these issues and eliminate instances of double taxation for both states and their residents. In that regard, the Maldives-Bangladesh DTA, signed on 23 December 2021, seeks to simplify tax obligations between the two states. The agreement covers various income categories, including dividends, interest, royalties, fees for technical services, and capital gains.
This overview highlights the key components of the Maldives-Bangladesh DTA, its benefits, and its implications for businesses attempting to make use of the treaty.
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