Guesthouses will be charged Green Tax on tourists for each day of their stay starting from 1 October 2016, under the eighth amendment to the Maldives Tourism Act published in the Government Gazette on 10 July 2016.
Green Tax for all other tourist establishments including tourist resorts, tourist hotels, and tourist vessels is currently set at USD 6 per night for each tourist and this tax was introduced to the Maldives tourism sector in November 2015.
To accommodate the change in the law, the Maldives Inland Revenue Authority (MIRA) has published an amendment to the Green Tax Regulation on 18 August 2016. According to this amendment, those guesthouses already registered with the MIRA for Goods and Services Tax on or before 30 September 2016 will be ‘automatically registered’ for Green Tax by the MIRA, and hence are not required to submit a new registration.
Guesthouses will also be required to pay Green Tax to the MIRA even if they have not obtained a Guesthouse Operating License from the Ministry of Tourism, as long as they are accommodating tourists at their facilities. Maldivians and resident permit holders who stay guesthouses are excluded from the tax.
Green Tax must be paid to the MIRA in United States Dollars, together with a monthly tax return, which is due on the 28th of the subsequent month. A tax return has to be filed even if a tourist did not stay in the facility, as long as the facility is registered for Green Tax.
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.