MIRA announces offset mechanism for government and state-owned company debts against taxes

The Maldives Inland Revenue Authority (MIRA) has introduced a procedure allowing taxpayers to offset money owed by government institutions or state-owned companies against their tax liabilities. Under the new rules, individuals or entities that are owed money by a government office or a state-owned enterprise can request to offset that amount against taxes they are required to pay to MIRA. The application for offset must be submitted through MIRAConnect, via the MIRA 904 (Adjustment/Refund Request) form, or by email, along with details of the amount receivable. If the debt is from a government office, MIRA will verify the amounts through the Ministry of Finance. For debts from state-owned companies, verification will be done through the relevant company. A company is considered state-owned if it appears on the list published by the Ministry of Finance. When processing the offset, MIRA will prioritize the outstanding principal amount, penalties, and interest in that order. If there is no unpaid principal, the offset can be applied to late payment fees. The offset will only take effect once the government entity or state-owned company transfers the owed amount to MIRA, and the date of payment will be considered the date MIRA receives the funds. MIRA has called on all parties to take note of the new procedure, which is now in effect.