Dhiraagu has advised its shareholders to review and update their tax residency information to ensure that future dividend payments are processed accurately and in accordance with the Maldives’ applicable tax requirements.
The telecommunications company said maintaining up-to-date tax residency records is important because the tax treatment of dividend payments can differ depending on whether a shareholder is considered a tax resident of the Maldives. Accurate shareholder information enables the company to apply the appropriate tax treatment when distributing dividends and helps ensure that payments are handled efficiently.
Under the Maldives Income Tax Act, dividends paid to shareholders who are not tax residents of the Maldives are subject to a 10 per cent Non-Resident Withholding Tax. Dhiraagu is therefore required to deduct the applicable withholding tax from dividend payments made to shareholders who are confirmed as non-residents for tax purposes.
The company is also required to deduct the relevant withholding tax in cases where it is unable to verify a shareholder’s Maldivian tax residency status at the time a dividend payment is processed. As a result, shareholders whose residency information is incomplete, outdated or unavailable could have withholding tax applied even where their current circumstances may qualify them for different tax treatment.
Dhiraagu has encouraged shareholders to ensure their records accurately reflect their latest residency status ahead of dividend distributions. Keeping these details current can help shareholders avoid complications arising from incomplete information while supporting smoother processing of payments in line with national tax regulations.
Shareholders can update their tax residency status through the Maldives Securities Depository portal. Those who prefer an alternative method may complete Dhiraagu’s Shareholder Information Form and submit it to the company’s Investor Relations team by email.
The advisory forms part of Dhiraagu’s efforts to strengthen shareholder communication and maintain accurate investor records while supporting compliance with the Maldives’ established taxation framework. Clear tax residency information is particularly important for companies with a diverse shareholder base, including overseas investors and Maldivians residing abroad.
The process also reflects the continued development of the Maldives’ corporate, securities and taxation framework, with listed companies and financial market institutions increasingly relying on updated investor information to support transparent and efficient administration of shareholder entitlements.
For shareholders, regularly reviewing personal and tax-related information held by companies and securities institutions can help ensure that dividends and other shareholder benefits are processed without unnecessary delays or deductions arising from outdated records. Dhiraagu has therefore encouraged investors to complete any required updates before upcoming dividend payments are processed.
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