The Maldives Monetary Authority (MMA) has announced several important deadlines and requirements for businesses under the new Foreign Currency Regulation. Companies, especially those in the tourism sector, are urged to comply with these regulations to avoid penalties.
MMA Registration Requirements
Businesses registered with the Maldives Inland Revenue Authority (MIRA) for the Tourism Goods and Services Tax (TGST) before 1 October 2024 must register with the MMA by 30 October 2024.
For new businesses registering with MIRA after 1 October 2024, MMA registration must be completed within 30 days of the MIRA registration date.
Foreign Currency Exchange Rules
The new regulation requires businesses to exchange foreign currency as per the following categories:
- Category A: Companies must exchange USD 500 per tourist by the 28th day of the third month following tourist arrivals. For tourists arriving in October 2024, this deadline is 28 January 2025.
- Category B: Companies must exchange USD 25 per tourist by the same deadline. For October 2024 arrivals, the deadline is also 28 January 2025.
Reporting and Deposit Requirements
Providers of tourism goods and services must submit sales details to the MMA by the 28th day of the following month. For example, sales for October 2024 must be reported by 28 November 2024.
Additionally, all realised sales must be deposited into a local bank account by the 28th day of the third month after the sales month. For sales in October 2024, businesses must deposit the funds by 28 January 2025.
Compliance Essential for Businesses
The MMA urges all businesses involved in the tourism sector to ensure compliance with the new regulations. These rules are designed to improve the management of foreign currency and ensure transparency in financial operations.
Businesses that fail to comply with these deadlines may face penalties. The MMA has provided these clear guidelines to help companies navigate the new requirements efficiently.
