The Maldives Inland Revenue Authority has brought an amendment to the Business Profit Tax Regulation exempting micro businesses from submitting an auditor’s report with their BPT Return.
Pursuant to Tax Ruling B-57, a micro business, which is categorically defined as a business with an annual turnover of less than 10 million Rufiyaa, is not required to submit an auditor’s report regardless of their accounting basis. Furthermore, if a micro business makes an election under the BPT regulation to prepare their accounts on a cash basis, they are not required to submit their statement of financial position, statement of cash flows and statement of changes in equity with their BPT return.
However, if a business’s annual turnover for the tax year 2015 exceeded 10 million Rufiyaa but fell below that in the subsequent tax year, they are still required to submit an auditor’s report with their BPT return for the tax year 2016.
Micro businesses are still required to submit an auditor’s report under the Companies Act.
By CTL Strategies LLP – a firm specialised in providing tax and legal advisory services to businesses. CTL offers comprehensive range of tax advisory services to all types of clients from family run businesses, SME’s to accounting and law firms, and local and multinational companies.
