The Maldives Inland Revenue Authority (MIRA) has introduced amendments to the Income Tax Regulation, stipulating that accommodation provided to employees working on uninhabited islands and marine vessels shall be excluded from their total remuneration when calculating taxable income. Furthermore, the updated regulations mandate the preparation of financial statements on an accrual basis and the submission of audit reports for businesses whose non-current assets exceed a cost of MVR 30 million. The amendments also establish new criteria for the treatment of leases and the determination of functional currency. Additionally, it has been decided that the capital allowance rate for tourist establishments, excluding guesthouses, will be revised to 2.5% effective from 2027. MIRA has clarified that these regulatory changes do not involve any adjustments to the prevailing tax rates.
