MIRA Formalises New Online Offset Mechanism for Outstanding State Liabilities
- MIRA published a policy allowing taxpayers to offset outstanding tax liabilities against receivables owed by state institutions and SOEs.
- Applications must be submitted digitally via form MIRA 904 on the MIRAconnect portal, with no manual submissions accepted.
- Offsets require MIRA verification, follow a principal-fines-interest settlement order, and need formal written approval from the state body before taking effect.
The Maldives Inland Revenue Authority (MIRA) has published a comprehensive policy regulating the offsetting of outstanding tax obligations and state liabilities against receivables owed to taxpayers by state institutions and State-Owned Enterprises (SOEs).
Under the newly formalised framework, taxpayers facing liabilities with the authority may apply to set off those dues against payments owed to them by state bodies, government agencies, or public enterprises. The regulation aims to establish transparent and standardised general guidelines for processing these adjustments across the public sector.
According to the published document, taxpayers seeking an adjustment must submit their applications digitally using form MIRA 904 via the online portal, MIRAconnect. MIRA will not accept manual or alternate submissions outside the designated online system.
The policy outlines strict conditions governing the eligibility and sequence of debt clearance:
- State Verification: MIRA will independently verify and confirm with the relevant government body, authority, or State-Owned Enterprise that the state owes the claimed sum before clearing any outstanding amount.
- Debt Settlement Hierarchy: When applying an offset to an outstanding account, the authority will settle liabilities in a specific order: it will clear the principal amount first, followed by accumulated fines, and finally any accrued interest or secondary penalties.
- Formal Approval Required: No offset or settlement will take effect until the concerned state institution or enterprise formally sanctions the transfer of funds and provides written confirmation to MIRA.
The framework establishes clear administrative definitions, clarifying that unless expressly stated otherwise, singular references encompass the plural and vice versa. The operational guidelines have entered into force immediately upon publication.
