The Latest Updates By MIRA Regarding Tax Compliance In A Nutshell

Local tax administrator, Maldives Inland Revenue Authority (MIRA), works closely with policymakers, international partners, and other stakeholders in order to empower taxpayers and to enhance trust in the tax system within the community through effective and administration of tax laws. In this regard, on Monday, the Authority has publicized two documents regarding tax compliance; ‘Compliance Risk Management Policy’ and ‘Overview of Compliance Improvement Plan 2021’. You may view both the documents at this link, while we sum up what can in this article.

Compliance Risk Policy Management

This policy was introduced with the objective to promote voluntary compliance by making matters easy for taxpayers in fulfilling their obligations and to deter non-compliance through regulated actions. Under the policy, the Authority will be regularly monitoring taxpayers through a framework that is based on the category of the taxpayer and the amount of tax owed, following evaluation of compliance risks. The policy also outlines a guideline for taking action against those who fail to comply with tax obligations.

The content of the policy is subject to change as new risk areas are detected and taxpayer behavioral changes are observed in time.

Overview of Compliance Improvement Plan 2021

This document details compliant improvement activities plans for this year. The Authority stresses the following four activities under the plan;

• Providing taxpayer facilitation and assistance in fulfilling income tax obligations
• Carrying out targeted registration programs for specified sectors
• Undertaking initiatives to mitigate the negative effects of COVID-19 on tax compliance
• Carrying out compliance interventions to treats risks of the year 2018 & 2019