Commissioner General of Taxation Hassan Zareer has stated that the recent amendment to the Income Tax Regulations is expected to boost state revenue from foreign currency by USD 80 million.
In an exclusive interview with PSM News, Zareer noted that some individuals have previously paid income tax in dollars, generating approximately USD 40 million annually. However, he emphasized that the new regulations will significantly enhance the total revenue collected. He noted that this secure up to USD 120 million in revenue.
Last month, the Maldives Inland Revenue Authority (MIRA) updated the Income Tax Regulations. Under the new rules, those earning income in foreign currency will be required to file their tax returns and interim returns in U.S. dollars. Additionally, they must make interim payments and settle their income taxes in dollars as well.
The amendments also affect withholding tax returns for non-residents earning foreign currency, employee withholding taxes, and capital gains withholding taxes. Starting in October, these payments and returns must also be submitted in U.S. dollars.