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

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),Class	Maldivian Passengers	Foreign Passengers
Economy	USD 12	USD 50
Business	USD 120	USD 120
First	USD 240	USD 240
Private Jet	USD 480	USD 480

As specified in the Second Amendment to the Airport Taxes and Fees Act

Airport Development Fee (ADF):

Class	Maldivian Passengers	Foreign Passengers
Economy	USD 12	USD 50
Business	USD 120	USD 120
First	USD 240	USD 240
Private Jet	USD 480	USD 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.

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.

Sun Siyam Olhuveli Maldives brings a fresh twist to Easter celebrations with a creative LEGO-themed experience from April 20th to 25th, promising an exciting holiday for guests of all ages. The celebration offers a vibrant mix of creativity, family adventure, and entertainment across the resort’s pristine beaches and venues. Additionally, special performances by award-winning magician Yollin Lee and internationally acclaimed DJ and rapper Ironik will add to the excitement.

Exciting Entertainment Lineup

Sun Siyam Olhuveli enhances the experience even further with a sensational lineup of entertainment. Yollin Lee, an international champion magician known for his award-winning sleight-of-hand performances, will dazzle guests with his mesmerizing illusions. Furthermore, DJ Ironik, a renowned British DJ, producer, and rapper who helped shape British urban music, will bring his signature beats to the resort, ensuring a night to remember.

Interactive Family Activities

The festivities kick off with a LEGO-themed Easter egg hunt at Sunrise Beach, followed by engaging LEGO workshops where families can unleash their creativity. As the sun sets, the Lagoon Bar Deck hosts an evening show filled with music, dance, and dazzling lights to mark the grand opening. Throughout the celebration, guests can enjoy a variety of interactive activities. For example, the Mosaic Challenge invites participants to construct a giant LEGO masterpiece, while kids can compete in the classic Egg Rolling competition at Milano Beach. Moreover, Easter brunch at Island Pizza and an exclusive Easter BBQ at Water Sports Beach will offer culinary delights, complemented by a Family Sandcastle Competition.

The fun doesn’t stop there. Guests can also enjoy activities like egg painting, a LEGO hunt, and Easter cookie decorating. Additionally, the Egg Spoon Race, which takes place across multiple beach locations, will add a lighthearted competition, while a special Easter cocktail will bring the celebration to a memorable close.

Exclusive Offers for a Perfect Getaway

For those seeking a more enhanced experience, exclusive promotions such as the Family Fun Holiday package, Easter BBQ, and Water Sports Beach Carnival will be available for an additional cost. In addition, families can enjoy 30% off all kids’ activities, making it the perfect time for a sun-soaked, adventure-packed holiday.

This Easter, treat yourself to a luxurious escape! Book a grand villa by April 20, 2025, for stays through December 23, 2025, and unlock exclusive perks—50% off à la carte dining, airport transfers, and a complimentary couple’s massage with a four-night stay. Furthermore, extend your stay to five nights in a pool villa and enjoy free round-trip transfers. Plus, enjoy irresistible discounts on room upgrades, water sports, and a romantic diving experience. To take advantage of this offer, visit Easter Offer at Sun Siyam Olhuveli.

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