The Ministry of Finance and Public Enterprises has introduced a mechanism allowing businesses to offset taxes payable to the Maldives Inland Revenue Authority (MIRA) against outstanding payments owed to them by Government institutions or State-owned companies.

Under the scheme, micro, small and medium-sized enterprises (MSMEs) can apply to MIRA to offset tax liabilities against unpaid bills submitted to Government agencies or State-owned companies.

If a business’s tax liability exceeds the amount owed by the Government, the business must pay the remaining balance to MIRA. If the outstanding Government payment exceeds the tax liability, the Government will pay the remaining amount to the business after deducting the tax due.

The ministry said applications must include details of the outstanding payments and comply with procedures set by MIRA.