New ruling by MIRA changes complimentary services rule

The Maldives Inland Revenue Authority has published a Tax Ruling (Number TR-2017/G42) on 9 October 2017 which amends Section 54 of the Goods and Services Tax Regulation to allow complimentary supplies without any imposition of GST for a period of 7 days.

Prior to this amendment, GST was not imposed on goods or services supplied free of charge for business purposes or promotion of the business for up-to a maximum of 3 days, following which GST is to be levied for any supplies made after that period. The Ruling now extends that period from 3 to 7 days

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The Ruling does not change any other requirements under Section 54 and as such, the standard of records to be maintained and criteria of what constitutes a complimentary service has not changed.


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