Maldives Expands Tax Net to Include Foreign Tour Operators to Boost Revenue

The Maldives Inland Revenue Authority (MIRA) has announced the integration of foreign tour operators into the national tax system following a legislative amendment to the Goods and Services Tax (GST) Act. The move aims to bolster state revenues by capturing income from entities that previously operated outside the local fiscal framework. Speaking on PSM News’s 'Raajje Miadhu' programme, Nafa Waheed, MIRA’s Director General for Large Taxpayer and International Tax Audit, clarified that the amendment is not designed to introduce a new tax or increase rates for Maldivian citizens. Instead, the focus is on broadening the tax base by ensuring that foreign entities facilitating tourism services contribute to the national treasury. Under the new regulations, the tax will be levied on businesses that do not maintain a permanent taxable establishment in the Maldives but provide inbound tourism products or facilitate related bookings. This includes tourist accommodations and various other tourism-related goods and services. Waheed emphasized that the statutory adjustments will not affect businesses already registered with MIRA. Local tax rates and filing procedures remain unchanged for existing taxpayers, who are encouraged to continue using the MIRAconnect portal for their administrative requirements. President Dr Mohamed Muizzu ratified the amendment on August 31. Upon signing the bill, the President maintained that the measure is specifically tailored to the tourism sector, ensuring that a wider range of international operators contributing to the economy are held accountable for their tax obligations without impacting the cost of living for locals. The move signals a strategic shift toward more comprehensive tax enforcement within the tourism industry, which remains the primary driver of the Maldivian economy.