On November 16th, the Maldives Government passed a bill proposed by the government to increase the GST tax rate for both the tourism sector and the general sector. Starting from the new year of 2023, taxpayers will be charged higher GST and TGST in the Maldives. On November 22nd, the President ratified the Goods and Services Tax (Sixth Amendment) Act of 2022 [Law Number: 20/2022], officially enacting the legislation into law.
The new tax rates will be as follows:
- GST will be increased from 6% to 8%
- T-GST will be increased from 12% to 16%
Following the publication of the law in the Government Gazette, the Maldives Inland Revenue Authority (MIRA) has issued a general circular to all registered taxpayers.
In their guidance, MIRA has advised all taxpayers to ensure that all necessary system changes are made to ensure collection of GST at the revised rates – come this new year. Additionally, MIRA has stated that the time of migration to the new rate will be 0000 hours of 1 January 2023, meaning that all supplies of goods until 11:59 hours of 31 December 2022 would be at the current rates of 12% and 6% for the tourism and general sectors, respectively. At exactly midnight, the country would migrate to the collection of GST at the revised new rates of 16% for the tourism sector and 8% for the general sectors.