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State receives USD 2.8 million as Remittance Tax

The state has received USD 2.88 million as Remittance Tax in the first five months of this year.

Until May 30, the state has received USD 2.88 million as Remittance Tax while USD 2.33 were received as remittance tax in the first four months of the year, according to the weekly report issued by Ministry of Finance. The statistics show that about USD 647,580 were received monthly as remittance tax to state.

Remittance Tax is imposed on money transferred out of the Maldives by foreigners employed in the Maldives. Remittance Tax, which is collected at the rate of 3 percent of the remitted amount, came into effect in October 2016. The tax is imposed pursuant to the Fifth Amendment to the Employment Act, which was ratified by the president in August 2016.

Foreigners employed in the Maldives refers to individuals who have been issued a work visa pursuant to the Maldives Immigration Act and foreigners who are not allowed to work in the Maldives without a work visa, even though such visa has not been issued or the visa has expired.