3% remittance tax implemented for all expats in maldives

A 3% Remittance Tax has been imposed on money transferred out of the Maldives by “foreigners employed in the Maldives”. The tax, which is collected at the rate of 3% of the remitted amount, came into effect on 1 October 2016. It is imposed pursuant to the Fifth Amendment to the Employment Act (Law Number 22/2016), which was ratified by the President on 25 August 2016. “Foreigners employed in the Maldives” refers to “foreigners who have been issued a work visa pursuant to the Maldives Immigration Act (Law Number 1/2007) 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.”

 

Banks and money transfer agencies operating in the Maldives are responsible for collecting the tax from foreigners employed in the Maldives at the point of remittance and are required to file a monthly Remittance Tax Return with MIRA by the 15th day of the following month, and remit the tax collected during the month to MIRA by that date.

 

To comply with the ruling all expats working in Maldives are required to have a bank account in the Maldives and all salaries to be paid only to these accounts.