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Maldives Tax Hikes: What’s New and How It Impacts You

Updates to Maldives Tax policy for travelers

On 5 November 2024, the Maldives government established important changes to three key tax acts that will impact the tourism industry and travelers. These amendments are part of the government’s economic strategy to reduce the budget deficit and increase foreign currency inflows. The updated rates for Tourism Goods and Services Tax (TGST), Green Tax (GRT), and Airport Taxes and Fees were outlined in the amendments, and the changes are expected to affect both businesses and travelers. The information below is sourced from the Maldives Inland Revenue Authority (MIRA).

Tourism Goods and Services Tax (TGST)

Starting 1 July 2025, the TGST rate for tourism sector goods and services will increase from 16% to 17%. This increase will be effective after a transitional period from 1 January 2023 to 30 June 2025, when the rate will remain at 16%.

This change impacts tourism businesses, particularly those who need to prepare for the rate increase. Additionally, the Seventh Amendment to the Goods and Services Tax Act introduces a key update: staff cafes in tourism establishments and shops can now register for the general GST at 8%. Previously, only staff shops had this option, giving businesses more flexibility when catering to their employees.

Green Tax (GRT) Changes

Effective 1 January 2025, the Green Tax (GRT) rates will change. The Fourteenth Amendment to the Maldives Tourism Act sets the following new rates:

  • Tourist resorts, integrated resorts, resort hotels, and tourist vessels: USD 12 per tourist per day.
  • Hotels and guesthouses on uninhabited islands: USD 12 per tourist per day.
  • Hotels and guesthouses on inhabited islands:
  • For more than 50 rooms: USD 12 per tourist per day.
  • For 50 rooms or fewer: USD 6 per tourist per day.

Additionally, from 1 January 2025, infants under the age of 2 years will be exempt from the Green Tax, offering relief for families traveling to the Maldives.

Airport Taxes and Fees

The amendments to Departure Tax and Airport Development Fees (ADF) will take effect on 1 December 2024. These changes will affect both Maldivian and foreign passengers departing from the Maldives. The updated rates are as follows:

Departure Tax:

Authority),ClassMaldivian PassengersForeign Passengers
EconomyUSD 12USD 50
BusinessUSD 120USD 120
FirstUSD 240USD 240
Private JetUSD 480USD 480
As specified in the Second Amendment to the Airport Taxes and Fees Act

Airport Development Fee (ADF):

ClassMaldivian PassengersForeign Passengers
EconomyUSD 12USD 50
BusinessUSD 120USD 120
FirstUSD 240USD 240
Private JetUSD 480USD 480
As specified in the Second Amendment to the Airport Taxes and Fees Act

However, the ADF and Departure Tax rates for Maldivian economy class passengers will remain unchanged.

These changes are part of the Second Amendment to the Airport Taxes and Fees Act and will affect all passengers departing from Velana International Airport.

Refund Policy for Excess Taxes

Passengers who have been charged incorrectly or have overpaid the Departure Tax or ADF will be able to request a refund from the Maldives Inland Revenue Authority (MIRA). This provision ensures that any excess taxes paid by passengers will be refunded.

Implementation Dates and Regulations

The effective date for the amendments is November 5, 2024, but the full implementation of these changes will happen on different dates:

  • TGST: The increase to 17% will take effect from 1 July 2025.
  • Green Tax: The new rates will apply starting on 1 January 2025.
  • Airport Taxes and Fees: The updated rates will be enforced on 1 December 2024.

The Maldives Inland Revenue Authority (MIRA) will publish regulatory amendments within 30 days to ensure smooth enforcement of these changes.

These recent changes to the Maldives’ tax structure will significantly impact both businesses and tourists. Tourists planning to visit the Maldives should be prepared for higher taxes, especially on accommodation, airport services, and departure fees. Businesses in the tourism sector will also need to adjust to the new rates and ensure that they comply with the updated regulations.

Stay informed and prepared for your next visit to the Maldives!

This article’s information is sourced from MIRA and reflects the latest updates to the Maldives’ tax policies.

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Canareef Resort Maldives Proudly Hosts the 15th World Bodybuilding & Physique Championships

Canareef Resort Maldives Proudly Hosts the 15th World Bodybuilding & Physique Championships

Canareef Resort Maldives recently hosted the prestigious 15th World Bodybuilding and Physique Sports Championships & Electoral Congress 2024, placing both the resort and the Maldives firmly on the international stage. This event, in particular, was a proud moment for Canareef and also a significant milestone for the Maldives as an emerging hub for major sporting competitions.

From 5 to 11 November 2024, over 450 athletes and officials from 41 countries arrived at the resort for this exciting championship. The backdrop of lush tropical scenery, combined with luxury villas and turquoise lagoons, made the event even more special. Additionally, the resort’s remarkable hospitality greatly contributed to the overall success of the competition.

To begin with, the opening ceremony set a grand tone for the championship. Among the distinguished attendees were Mr. Lawrence Leow, Chairman and CEO of Crescendas Group (owners of Canareef Resort), H.E. Munu Mahawar, India’s High Commissioner to the Maldives, and H.E. Ranga Goonawardena, Sri Lanka’s High Commissioner. Their presence, moreover, underscored the importance of this event for both the region and the resort.

Key Highlights

In the lead-up to the competition, participants began arriving between 1 and 5 November, including athletes, officials, and executive members. During this period, several critical meetings and preparations took place:

  • 6 November: Team managers and judges gathered for organizational discussions. Meanwhile, the WBPF Executive Council held important talks, followed by the WBPF Electoral Congress, strengthening the administrative foundation of the event.
  • 8 and 9 November: The championships officially kicked off, generating significant attention from media outlets and fans alike.
  • 10 November: The competition concluded with a grand Closing Ceremony and final prize distribution, celebrating the athletes’ remarkable achievements.

Maldives National Team’s Strong Performance

The Maldives National Bodybuilding Team delivered an outstanding performance, securing two Gold medals and one Silver:

  • Shaheen Ibrahim Didi clinched Gold in Men’s Bodybuilding (55 kg).
  • Azneen Rashad achieved Gold in Sports Physique (170 cm).
  • Yoosuf Ayaan Rizvee earned Silver in Junior Men’s Bodybuilding (up to 75 kg).

In addition to these victories, several other Maldivian athletes performed admirably:

  • Mohamed Nahyan Khan secured 8th place in Men’s Bodybuilding (80 kg).
  • Shaalu Ibrahim took 4th place in Athletic Physique (160 cm).
  • Abdulla Ahsan and Ismail Shuau Abdulla also placed 4th in their respective categories.

At the same time, India triumphed in the Men’s Team Championship, Vietnam claimed the Women’s Team Championship, and India’s Saravanan Mani emerged as the Overall Champion.

High Praise for Canareef Resort Maldives

Following the event, participants and organizers alike shared their praise for Canareef Resort’s hospitality. Datuk Paul Chua, President of the World Bodybuilding and Physique Sports Federation, offered high praise: “The hospitality provided by Canareef Resort is really fantastic. People are very happy. All the athletes and delegates who I met and spoke to have sent me many messages. They said we should return to this island next year. This place is actually very serene. The beaches are beautiful, and the people are warm and welcoming. We enjoyed our stay and are looking forward to returning, even if there’s no championship. I will personally come with my family.”

Likewise, Ahmed Hamza, Director of Canareef Resort Maldives, expressed his satisfaction with the success of the event: “We are extremely happy to host this event at Canareef. We believe the event has brought enormous publicity to Addu and the South region as a whole. We will continue to push for such events. We thank all those who have made this event a success.”

Similarly, Director Mohamed Jaish Ibrahim conveyed pride in both the team and the event’s execution: “Today we have completed a huge milestone by finishing the 15th World Bodybuilding and Physique Sports Championship. Your collective efforts, resilience, and teamwork have set a high standard for excellence. Cheers to the extraordinary team for reaching new heights and conquering challenges together.”

A Big Step for Canareef Resort

Without a doubt, hosting the 15th World Bodybuilding and Physique Sports Championships has solidified Canareef Resort Maldives’ reputation as a top-tier destination for international sporting events. Not only did this successful event highlight the resort’s exceptional ability to provide world-class service in a luxurious setting, but it also demonstrated the resort’s seamless integration of sports, relaxation, and adventure.

Looking ahead, Canareef Resort Maldives is excited to continue hosting global events. In fact, the resort plans to offer guests from around the world the same unparalleled beauty and warm hospitality that made this event a grand success. Furthermore, the resort is committed to establishing itself as a premier venue for both leisure and business travelers.

About Canareef Resort Maldives

Located in the southern Maldives, Canareef Resort is renowned for its pristine beaches, luxurious accommodations, and top-notch service. Whether for leisure or business, the resort offers an ideal combination of relaxation and adventure, making it a top choice for hosting international events and beyond.

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