The Ministry of Finance announced a list of companies exempt from paying income taxes. The companies, all Indian-based, are contractors of various infrastructural development projects in the Maldives.
Under Article 7 of the tax exemption act and Articles 1 to 12 of the Maldives Tax Act; the Maldives President has discretionary power to give exemptions to companies from paying income tax.
Moreover, the ministry said that the companies are excluded from paying taxes based on the agreement made between the Maldives government and India’s EXIM Bank for the line of credit. The bank provided the credit line with the condition to exempt Indian contractors active in the Maldives from paying income tax.
The Tax Exempt List
- Afcons Infrastructure: the contractor of Thilamale’ Bridge development and Addu road development projects. The company is exempted from paying income tax from 16th September 2021 to 17th May 2024
- L & T Infrastructure Engineering Limited: The consultant of Addu City development project is exempt to pay income tax from 26th May 2021 to 31 December 2025
- LEA Associates South Asia Pvt Ltd: exempt to pay tax from 26th May 2021 to 31 December 2025
- JMC Projects: the contractor of Hanimaadhoo Airport Development project and several water and sewerage projects in multiple islands. Exemption given for water and sewerage projects until March 2025 and for the airport development project; exemption until October 2025
- Vishwaraj Environment Pvt Ltd: the contractor of water and sewerage projects in six different islands is given exemption from 27th July 2021 until 31 March 2025