MIRA Cuts Penalties and Extends Instalment Flexibility to All Businesses

Mohamed Hilmy

27 October 2025, 00:00

The Maldives Inland Revenue Authority (MIRA) has updated its Instalment Policy and Enforcement Policy to make tax compliance easier for businesses across the Maldives. The revisions, announced on 27 October 2025, expand previous exemptions that applied only to small and medium enterprises, now allowing all businesses to benefit.

Under the updated Enforcement Policy, Article 6(b)—which allowed MIRA to pause further action while charging non-payers in court—has been removed. Meanwhile, in the Instalment Policy, changes to Article 7(d) now empower the Commissioner General to establish or withdraw payment commitments under instalment agreements for all businesses. The former restriction limiting this benefit to SMEs has been lifted.

Also revised is Article 9-2, which governs repeated instalment agreements. Previously, taxpayers who failed to comply faced an additional payment of 50 percent of the commitment payment. Under the new rules, that extra charge has been reduced to 5 percent—though it may increase if the agreement is renewed.

MIRA said these amendments aim to strike a balance between easing the burden of payment for businesses and maintaining the authority’s capacity to enforce tax laws. The changes mean firms can better manage their tax obligations while staying compliant.

MIRA Cuts Penalties and Extends Instalment Flexibility to All Businesses

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