The Ministry of Finance has established a system allowing funds owed by state institutions or state-owned enterprises to be offset against taxes payable to the Maldives Inland Revenue Authority (MIRA).

In a press release issued today, the Ministry of Finance stated that parties wishing to offset government-owed funds against tax payments can do so by submitting their requests to MIRA.

Under this system, amounts owed for unpaid bills submitted by micro, small, and medium-sized enterprises can be offset against taxes. The ministry stated that if a business's tax liability to MIRA exceeds the amount owed by the government, the business must pay the remaining balance to MIRA after the government-owed amount is deducted.

Additionally, if the government-owed bill amounts exceed the tax liability to MIRA, the government will pay the remaining balance to the business after offsetting the tax amount.

When applying to offset tax payments under this arrangement, the ministry has instructed that requests be submitted with detailed payment breakdowns in accordance with guidelines established by MIRA.