Dhiraagu has advised its shareholders to review, confirm and update their tax residency information to ensure that dividend payments are processed accurately and in accordance with the tax requirements applicable in the Maldives.
The telecommunications company said that shareholders whose tax residency information is incomplete, outdated or inaccurate may be subject to withholding tax deductions when dividends are distributed. Maintaining accurate shareholder information is therefore important to enable the company to determine the appropriate tax treatment of dividend payments.
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 also required to deduct the applicable withholding tax in cases where the company is unable to establish, at the time of payment, that a shareholder qualifies as a tax resident of the Maldives.
The requirement forms part of the country’s established tax administration framework and supports accurate reporting and compliance by companies when making payments to shareholders. Ensuring that tax residency records are properly maintained also helps shareholders avoid unnecessary deductions that may arise when their residency status cannot be verified.
Dhiraagu has encouraged shareholders to update their tax residency status through the Maldives Securities Depository’s Infinity portal. Shareholders may also complete the relevant Shareholder Information Form and submit the completed documentation to Dhiraagu’s investor relations team for the necessary updates to be made to their records.
The company said the exercise is intended to ensure that future dividend distributions are processed in line with applicable tax regulations while maintaining accurate and up-to-date shareholder information.
Dhiraagu remains one of the Maldives’ major publicly listed companies and a significant contributor to the country’s telecommunications and digital services sector. The company provides a broad range of mobile, fixed broadband, enterprise and digital connectivity services across the country, supporting households, businesses and public institutions as the Maldives continues to expand its digital infrastructure and technology-driven economy.
The shareholder update also reflects the broader importance placed on transparent corporate administration and compliance with national financial and taxation requirements. Shareholders have therefore been encouraged to verify their information in advance of future dividend payments to ensure their records correctly reflect their current tax residency status.
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