Maldives Inland Revenue Authority (MIRA) has urged prompt submission of income tax statement for the year 2021 before the given deadline, 30th June, 2022.
MIRA 604 forms are required to be submitted as income tax statements. This applies to all except for banks and insurance businesses.
Income tax returns must be submitted and paid if certain conditions are met. The authority stated that the interactive guide on MIRA’s website can be used to help determine what these conditions are. MIRA said that those registered for income tax will not be required to submit income tax returns if the following conditions are met:
- Individuals whose total income for 2020 and 2021 does not exceed MVR 2 million and whose taxable income for 2020 and 2021 does not exceed MVR 720,000 will be exempt from submitting income tax returns.
- If the total income earned by an individual in 2021 is the wage earned from one employer, they will not be required to submit income tax returns for the year 2021.
- Companies and partnerships that do not exceed MVR 2 million in total income for 2020 and 2021 and no more than MVR 500,000 in taxable income for 2020 and 2021 will be exempt from submitting income tax returns for 2021.
- Companies and partnerships will not be required to submit income tax returns for 2021 if they did not earn any income in 2020 and 2021.
MIRA advises those who are required to submit income tax returns for the year 2021 to pay careful attention to the following:
- Only business income earners are required to submit their financial figures along with the income tax statement.
- If the total income of the business earners exceeds MVR 10 million, the auditor’s report must be submitted along with the income tax statement.
- Wage earners should calculate tax-based income inclusive of non-cash and non-cash allowances and benefits.
- If those who have deducted withholding tax from their employees are required to submit income tax returns, the taxable income will be calculated accordingly, including the amount of wage deducted. However, the amount of withholding tax paid will be reduced by the amount of tax payable throughout the year.
MIRA requests those who require any assistance in preparing income tax returns to contact MIRA hotline 1415 or email email@example.com. Information desks in front of MIRA’s service center will also assist in completing the income tax returns this week.