Ministry of Finance announces income tax exempt list

The Ministry of Finance has announced a list of companies exempt from paying income taxes. The companies all belong to the category of contractors awarded with various development projects.

Under Article 7 of the tax exemption act, and based on Articles 1 to 12 of the Maldives Tax Act; as per the discretionary power of the Maldives President to give exemptions to companies from paying taxes, the contractors will not be subjected to pay any taxes.

The companies include Afcons Infrastructure which is the contractor of Thilamale’ Bridge development and Addu road development projects. The company is exempted from paying taxes from September 16, 2021, to May 17, 2024.

Other companies include L and T Infrastructure Engineering Limited and LEA Associates South Asia Pvt Ltd; both Indian companies, have been exempted from paying taxes from May 26, 2021, to December 31, 2025. L and T Infrastructure Engineering provides consultancy for the Addu City development projects.

Another Indian company, JMC Projects, the current contractor of the Hanimaadhoo Airport Development project, and various other water and sewerage projects across the country has been given the exemption until 2025. JMC Projects has been given tax exemption for its ongoing water and sewerage projects until March 2025 and for the airport development project, the contractor was given exemption until October of the same year.

Vishwaraj Environment Private Limited, another Indian company, currently working on water and sewerage projects in six different islands has been given the exemption from July 27, 2021, until March 31, 2025.

Ministry of Finance reported that these companies have been exempted from paying income tax according to the agreement made with India’s EXIM Bank for the credit line.