18th January 2011- published the Business Profit Tax bill which was passed by parliament on 30th December 2010. All the business in Maldives will have to pay a 15% profit tax starting from July 18th 2011 which is six months from today.
Maldives is a experiencing a new tax regime. A value added tax by the name of T-GST is in place from 1st January 2011. Each tourism related enterprise have to pay 3.5% as T-GTS. In addition the new pension scheme required employers to pay atleast 7% of the basic pay as pension. A total of 14% of staff salary has to go to the new Pension Authority. It includes foreign workers in Maldives too.
The idea behind profit tax was once it is in place import duty will be abolished. The government has also decided to charge 30% less on goods imported into the country through Addu Port and Kulhudufushi Port. Reports are coming that many companies importing cigerette into the country has found out this hole and importing tobacco via these two ports to avoid paying in millions as tax.
In addition to above mentioned taxes the government also charges USD 8 per sqaure feet if the total rental of the island is less than USD1 per year. Passengers into Maldives will have to pay USD 26 once GMR the Indian company commences charging air development charge. Currently each passenger pays USD18 as service charge. The baggage charge at Male Airport has already increased from 3 to USD10.
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