The Maldives Inland Revenue Authority (MIRA) has published the framework allowing small and medium-sized enterprises (SMEs) to offset funds owed to them by state institutions and state-owned enterprises against taxes and other dues payable to MIRA.

According to the framework released by MIRA today, its primary objective is to facilitate the settlement of state dues against amounts payable to MIRA, in line with the government's decision to provide relief to small and medium-sized enterprises.

President Dr. Mohamed Muizzu announced that tax relief would be provided to small and medium-sized enterprises last Saturday night during the awards ceremony of this year's manufacturing exhibition held at Barceló Nasandhura.

According to MIRA's framework, applications to offset the funds must be submitted through the authority's online portal, "Miraconnect." Additionally, the authority stated that applications can also be submitted via email after filling out MIRA Form 904 or the adjustment and refund request form.

The framework specifies that full details of the funds receivable from the relevant state institution or state-owned enterprise must be provided when applying for this service.

According to the framework, if the funds are receivable from a state institution, verification will be conducted through the Ministry of Finance, whereas if receivable from a state-owned enterprise, verification will be handled directly by that respective company.

MIRA will follow a specific sequence when offsetting the funds, according to the framework. Accordingly, offsets will first be applied to outstanding principal amounts owed to MIRA. Subsequently, allocations will be made towards fines and interest. If there are no outstanding principal amounts, offsets can also be applied to payments due for periods whose deadlines have not yet expired, MIRA stated.

Under this framework, any funds will be considered successfully offset only after the relevant state institution or state-owned enterprise transfers the funds to MIRA. Furthermore, the date recorded in MIRA's records as the date of payment by the business will be the date the funds are officially received by MIRA.