Maldives Inland Revenue Authority (MIRA) has collected MVR 2.58 billion as tax revenue during the month of December 2022.
According to MIRA’s monthly revenue collection report, the authority recorded a revenue increase of 27.4% in December 2022 compared to December 2021. This is mainly due to the increment in the collection of Lease Period Extension Fee, GGST, Income Tax from companies and non-individuals and Non-Resident Withholding Tax.
Lease Period Extension Fee is one of the highest revenue contributors during the month. Pursuant to the Lease Period Extension Fee Regulation, resorts could opt to extend their lease period for 99 years. The payment option and rate being tied to the statutory deadline of 26th December 2022, and as the rate of extension increases after this deadline, most payers chose to pay before the deadline. This led to a significant increment in revenue.
Revenue collection in December 2022 also surpassed the forecasted revenue by 77%, mainly due to the significant increment in the collection of TGST, GGST and Non-resident Withholding Tax. Furthermore, the receipt of USD 57.5 million as Lease Period Extension Fee, led to a significant increment in revenue, compared to the projection. However, this fee is not included in the projection as the payment options to extend the lease period of resorts are completely left to the discretion of the taxpayers.
The tax revenue collected by MIRA during December 2022 includes USD 135 million.