Maldives Inland Revenue Authority (MIRA) has revealed over USD 12.75 million, billed as company annual fees and fines, has been recorded as pending payments to the state. A large portion of the amount is pending payments from companies which have been decided to be dissolved, according to MIRA.
MIRA has announced the state must have received USD 12.75 million by the end of last year from 7,089 companies as company annual fees and fines. Revealing about pending payments, MIRA said the state must receive over USD 12.2 million from 5,772 companies which are being dissolved, and over USD 528,000 from 1,317 companies that are still functioning.
According to the Companies Act of Maldives and Business Profit Tax Act, a company operating in Maldives is required to submit a tax report by the end of the business year, even if the company does not operate any business and if the tax report is not submitted, the company will be fined in accordance with the Tax Administration Act.
A company will only be removed from the tax registry once the company is officially dissolved by the registrar of companies. MIRA has advised all the companies registered to follow the acts and officially dissolve the companies if they are not functioning.