Tax & Accounting Blog

Maldives Green Tax, U.S. Greenbacks

Blog, Checkpoint Daily Newsstand, Featured, Indirect Tax, ONESOURCE, Reuters Business News, Reuters Tax & Accounting News, Tax Information Reporting October 23, 2015

Starting 1 November 2015, non-resident visitors to the Maldives will be subject to a $6 per person per day tax. Known as the Green Tax, the tax was approved by the parliament on 15 December 2014 and ratified by President Abdulla Yameen on 17 December 2015. On 12 October 2015 the Maldives Inland Revenue Authority published regulations related to the implementation of the tax. According to the published regulations, the Green Tax is payable in US Dollars and not in Rufiyaa, the official currency of the Maldives. The tax will be collected by tourist resorts, tourist hotels and tourist vessels.

The Green Tax fills the space left by the previous Bednights Tax (authorized under Maldives Tourism Act (Law No. 2/99)), an $8 per day fee on tourist accommodations which was discontinued 1 November of 2014. Also on 1 November 2014, the VAT rate on tourist services in the Maldives rose from 8% to 12%. On 4 Msrch 2015 the International Monetary Fund reported a 5% growth in the economy in 2014, driven by increased tourist activity, particularly from visitors from Asian markets.