President ratifies amendments to three acts incl. Income Tax Act

President Ibrahim Mohamed Solih has on Tuesday ratified amendments to the Income Tax Act, Maldives Statistics Act and the Small and Medium Enterprises (SME) Act.

All three bills were passed on July 8, at the 21st sitting of the second session of the People's Majlis this year.

The new amendment to the Income Tac Act, ratified on 17 December 2019, validates charging an income tax on temporary residents in the Maldives with a working visa and highlights how to calculate employees withholding tax and the special immunity given upon paying income tax, along with further elaborations.

While the first amendment to the SME Act has also been ratified, it decrees the formation of an establishment under the full control of the government. This entity is to be referred to as the ‘Business Center Cooperation’ (BCC) and the establishment would be responsible for monitoring and ensuring that policies and programs managed under the Act achieves the government’s goal to create an environment specifically for small and medium businesses to flourish. Moreover, the amendment states that the BCC must restore service hubs assisting SMEs and establish additional service hubs within a three-month time frame of the amendment coming into effect. The amendment also nullifies chapter eight (chapter on employees) and adds more conditions under the other sections of the SME Act.

As per the amendment to the Maldives Statistics Act declares regulations for the collection, analysis, usage and publication of national statistics, under a certain national standard.

The objective of this act is to develop the statistics industry and to collect pertinent data regarding the Maldives economy, ecology and social aspects, so that data can be utilized for the good of the citizens. This act demands the foundation of the Maldives Bureau of Statistics which would serve as an independent entity in-charge of planning and operation of all national activities related to the field. The law would transfer access to all resources, legal obligations and staff employed by the previously created National Bureau of Statistics to the new body.

Furthermore, the Minister of National Planning, Housing and Infrastructure, Mohamed Aslam, is to be held liable for all matters related to the new bureau and a Chief Statistician is to be appointed by President Solih to operate the new bureau under instructions of the Minister. The amendment also mandates the initiation of a Statistical Council, comprising of 10 members.

Upon ratification, all three bills have been published in the Government Gazette and has now come into effect.