The Maldives Inland Revenue Authority (MIRA) has said a newly enacted amendment to the Goods and Services Tax Act will bring foreign tour operators and other overseas tourism businesses previously outside the country's tax framework into the GST system.

The authority said the amendment is designed to broaden the tax base rather than introduce a new tax or increase GST rates for local businesses and consumers.

MIRA Director General for Large Taxpayer and International Tax Audit Nafa Waheed explained that the legislation creates a formal mechanism to register eligible foreign entities and collect GST on taxable tourism-related goods and services.

The amendment applies to businesses that do not maintain a permanent taxable presence in the Maldives but provide inbound tourism products or facilitate related bookings.

These services may include tourist accommodation and other tourism goods and services supplied for consumption in the Maldives.

According to MIRA, the legislative changes will have no impact on businesses already registered for GST in the Maldives.

Existing GST rates, filing requirements, and administrative procedures for registered taxpayers remain unchanged.

The authority said taxpayers can continue completing required procedures through the MIRAconnect platform under the existing system.

The amendment to the GST Act was ratified by President Dr. Mohamed Muizzu on August 31.

The legislation expands the Maldives' ability to collect tax from overseas entities benefiting from the country's tourism industry.

The new framework is expected to strengthen state revenue by incorporating previously untaxed foreign tourism operators and service providers while maintaining the existing GST structure for locally registered businesses.

The government has described the measure as part of broader efforts to strengthen the national tax system and ensure greater consistency in the taxation of tourism-related services provided in the Maldives.