Maldives Inland Revenue Authority (MIRA) has eased its tax policies for businesses to accommodate installment payments when settling off tax. The authority took the measure in order to relieve businesses that have been impacted by the COVID-19 pandemic.
MIRA previously allowed businesses to pay its taxes in three-month installments and has now extended the period up to 26 month period. MIRA stated the ease of tax policies will be provided to micro, small and medium enterprises (MSMEs), and other businesses based on the income they received in 2020.
Businesses can enter into an installment agreement by paying a commitment payment, which has been reduced from 50% of the unpaid amount to 5-10%. MIRA stated businesses that have previously signed an installment agreement can request the new installment agreement or request to renew the terms of the current agreement.
Furthermore, taxpayers struggling to pay fines can also request MIRA to have the fines waivered and to request a tax clearance if the taxpayer has signed an installment agreement. MIRA has stated all taxpayers are eligible for the ease of policies and that MSMEs will be given more leniency in settling their taxes compared to other businesses.