The Maldives Inland Revenue Authority (MIRA) has introduced a new mechanism allowing taxpayers to settle outstanding amounts owed to the authority using payments they are due to receive from Government institutions and state-owned enterprises (SOEs), providing businesses with a more flexible approach to managing tax obligations and government receivables.
Under the newly published policy, eligible taxpayers may request that amounts payable to them by a Government institution or SOE be offset against outstanding liabilities due to MIRA. The arrangement is expected to be particularly beneficial for small and medium-sized enterprises that have pending payments from public-sector entities while also carrying tax obligations to the state.
Before an offset can be processed, the receivable claimed by the taxpayer must be formally verified. Amounts due from Government institutions will be confirmed through the Ministry of Finance and Public Enterprises, while receivables from state-owned enterprises will be verified directly with the respective company.
Once approved, outstanding liabilities will be settled according to a specified order, with the principal amount cleared first, followed by any applicable fines and then interest. The offset will officially take effect after the relevant Government institution or SOE transfers the approved amount to MIRA.
The new arrangement follows an announcement by President Dr Mohamed Muizzu during the Maldives Expo 2026 awards ceremony, where he stated that arrangements had been finalised to enable SMEs to offset unpaid Government dues against taxes owed to the state.
The mechanism supports the Government’s broader efforts to improve the business environment, strengthen cash-flow management for enterprises and address challenges faced by companies awaiting payments from public-sector institutions. By creating a structured process for settling mutual obligations between businesses and the state, the policy is expected to provide greater financial flexibility while ensuring that Government revenue obligations continue to be settled efficiently.
advertisment
advertisment
