Agents and tour operators selling Maldives holidays could see a new tax bite into their commission under a new bill proposed by the Maldives government.
The proposed 17% Goods and Services Tax would apply to the margin or commission earned by foreign tour operators and agents for accommodation, transport, food and other tourism services delivered in the Maldives.
Affected agents and tour operators would need to register with Maldivian tax authorities and would not be able to reclaim any input tax.
The bill, which was was submitted to the Parliament (People’s Majlis) on 15 August and accepted by committee 72-1, still needs to clear People’s Majlis, be ratified by the president, and be published in the Government Gazette before taking effect.
If passed, it would take effect from 1 October.
