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Transcript of MALDIVIAN TAXATION
There are two main types of tax collected in Maldives.
BUSINESS PROFIT TAX
BPT is tax charged on the profits of all business carried out in Maldives. Including residents and non resident companies.
Any business that makes a yearly profit that exceeds 500,000/- has to pay tax for the exceeded amount
GOODS AND SERVICES TAX
GST is collected from business that have registered under the GST law, from the goods and services sold in Maldives.
GST is an indirect tax.
GST is one of the main tax taken in Maldives.
TGST (Tourism Goods and Services Tax) also comes under GST. These are goods and services supplied by tourist establishments in the Maldives.
WHAT IS TAX?
Tax is a compulsory contribution to state revenue, levied by the government on workers' income and business profits, or added to the cost of some goods, services, and transactions.
THE PURPOSE OF TAX
THE 4 R'S OF TAXATION
TAX SYSTEM IN MALDIVES
MALDIVES INLAND REVENUE AUTHORITY
There are 4 R's of taxation
Tax collected by the government in order to provide public services such as health,education and safety.
Re-distribution helps prevent poverty and inequality.
"Taking from the rich to give to the poor"
To reduce the price of some goods eg:cigarettes
All the reasons and uses for collected tax have to be available to the public
-BPT (Business Profit Tax)
-GST (Goods and Services Tax)
TYPES OF GST AND THEIR RATES
8% (since 2013)
12% (since 2014)
ZERO RATE GST GOODS AND SERVICES
Zero rate goods and services refer to the goods and services from which GST would not be collected. These include
-Goods and services exported from Maldives
-Transferring the ownership of the business to someone else
-A good that is free from GST under the law of the government
:Such goods include
Rice, sugar, flour (bought and sold from STO)
Salt, milk (non flavored), black tea bag
Raw egg, potatoes, onions
Carrot, cabbage, tomato
Fish (kandumas, farumas), rihaakuru etc..
GOODS AND SERVICES EXCLUDED
Goods and services excluded from GST are, to put it simply tax free goods. These include:
-Electricity, water and sewerage system (registered with meter under a government institution.
-Health and Education
-Medicines and medical services (Aasandha)
-International transportation services
-Fees or fines
-Charity's or NGO goods.