The government of Maldives has proposed to bring amendments to tax regulations of the country. These amendments are expected to help increase national income.
One of the changes that would be brought about is the dissolution of the threshold for registration statement of Goods and Services Tax (GST). Additionally, there will be changes to Business Profit Tax (BPT) also.
The result of the dissolution of a specific threshold limit for registration and producing financial statements will be that all businesses in Maldives, big and small have to be responsible towards providing statements to MIRA. All businesses will be required to register for GST also. According to the government, this change will increase GST earnings by 20 percent.
Currently, the threshold limit for registration of GST is MVR 1 million worth goods sold and services provided over the course of 1 year of business.
Governor of MMA Mr Ahmed Naseer stated that time and resources would be needed to train the small businesses in producing financial statements and as such.
Changes proposed for BPT, are expected to increase the percentage of BPT paying businesses by 39 percent. and it is estimated to bring an increase of MVR 836.3 million in BPT earnings by the government.