Dhiraagu has advised shareholders to review and update their tax residency status to ensure dividend payments are processed under the correct tax requirements.
Under the Income Tax Act, dividends paid to shareholders who are not tax residents of the Maldives are subject to a 10 per cent Non-Resident Withholding Tax.
The company is also required to deduct the applicable withholding tax when it cannot confirm that a shareholder is a Maldivian tax resident at the time the dividend is paid. Keeping residency information current can therefore prevent shareholders from being taxed based on incomplete records.
Shareholders can update their tax residency status through the Maldives Securities Depository portal. They may also complete Dhiraagu’s Shareholder Information Form and submit it to investor-relations@dhiraagu.com.mv.
