Cash Declaration Limit Changed

The Maldives Monetary Authority, on 17 January 2019, published the first amendment to the Regulation on Cross Border Currency Declaration Amount. The changes introduced now require passengers travelling with USD 20,000 or more, and are travelling…

Basic Tax and Legal Considerations When Buying a Business

by Ali Naeem, Counsel Buying or selling a business is a complex transaction with many tax and legal variables to consider before you start negotiations and close the deal. Although the purchase terms are not solely driven by tax considerations, it…

Interest Paid to Lease Finance Companies Fully Deductible

On 8 November, the MIRA issued Tax Ruling B67 which deals with approved banks and financial institutions for BPT purposes. The new ruling, which supersedes Tax Ruling B2 which was published back on 20 March 2012, now considers Housing Finance Companies,…

New Conditions on Releasing Frozen Bank Accounts of Taxpayers

On 6 November, the MIRA published the second amendment to its Enforcement Policy, amending bank account release conditions, and introduced a new schedule for instalment payments granted to small businesses to pay outstanding taxes and fines. The amendment…

MIRA Audit Assessment Nullified on Violation of Procedure

On 23 October 2018, a three member bench of the Tax Appeal Tribunal unanimously decided in favor of a taxpayer citing MIRA’s failure to follow the procedure stipulated in law when collecting information for an assessment. The Appellant, Abdulla…

Filing Tax Appeals and Objections: Important Considerations

by Ali Naeem, Counsel The Tax Administration Act (TAA) lays out specific procedures to go about when you disagree with a decision made by the Maldives Inland Revenue Authority. The decisions that affect your business or tax liability are twofold -…

Implications of Tax Ruling B65 on Lawyers

by Ali Naeem, Partner   It is an often debated issue whether freelance lawyers, advisors or consultants who work for law firms should be considered as carrying out a “business” as defined in the Business Profit Tax Act. The answer to this…

Foreign Investment Procedure & Considerations

Foreign enterprises looking to invest in the Maldives are required to register their enterprise in the Maldives prior to commencing operations. Registering a foreign enterprise entails following a set of procedural rules, in the correct order, and complying…

Seminar on Tax Audits and Appeals

CTL Strategies is conducting a full day seminar on Tax Audits and Appeals. The six-hour seminar is designed to give participants an in-depth understanding of the audit process, including the steps leading up to the audit process, such as some considerations…

Tax Alert, 20 June 2018

This issue covers the following: 1. Thin capitalisation rules introduced through Tax Ruling B64. 2. Attributes of employment under a contract of service explained in Tax Ruling B65 3. Fifteenth amendment to the BPT Regulation: repealing of rules…