Maldives Inland Revenue Authority (MIRA) has said it collected over MVR14 million in remittance tax in 2016.
In December 2016 alone, MIRA collected MVR7.7 million in remittance tax.
Remittance tax is on money transferred out of the Maldives by foreigners employed in the country. Remittance tax, which is collected at the rate of 3% of the remitted amount, came into effect on October 1, 2016. It is imposed pursuant to the Fifth Amendment to the Employment Act, which was ratified by the President on August 25, 2016.
According to the amendment, banks and money transfer agencies operating in the Maldives are responsible for collecting the tax from foreigners employed in the country at the point of remittance. Banks and money transfer agencies 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.