MVR9m earned through remittance tax last month

Source: Avas

The Maldivian government has earned MVR 9 million through remittance tax last month.

According to the Maldives Inland Revenue Authority (MIRA), last month saw earnings of MVR 9,097,987, which was a slight increase from the MVR 9,062,521 collected in January last year.

Statistics released by MIRA also revealed that the remittance tax earned the government MVR 101 million last year and MVR 114 million the year before.

The remittance tax is a 3% tax imposed on money transferred out of the Maldives by foreigners employed locally. It came into being in 2016 and earned the state MVR 6,822,074 in its first month.

The tax is imposed according to the Fifth Amendment to the Employment Act (Law Number 22/2016) which also states that failure to comply will result in fines for individuals, along with fines and temporary revocation of the right to operate for businesses.

The bill also states that foreign workers in the Maldives need to be paid through accounts in their name at registered banks or through bank cheques deposited into the employee’s account. The bill goes on to state that failure to comply will result in a fine between MVR 50,000 and MVR 10,000.

According to the Maldives Immigration, there are 144,607 foreigners working in the Maldives, of which around 63,000 are working illegally.

Additionally, statistics released by MIRA state that the foreign workers in the Maldives earn around USD 300 million annually.

Share this post: