The Income Tax Rules have been amended to require companies earning income in dollars to pay tax in dollars.

The Maldives Inland Revenue Authority (MIRA) has amended the Income Tax Rules to require a person or company to pay tax in dollars if the currency used in their business transactions is other than Rufiyaa.

From the 31st of next month, the companies will also have to prepare their financial statements in dollars.

Companies preparing financial statements in Rufiyaa will have to pay income tax in Rufiyaa or dollars.

According to the amendment, withholding tax for non-residents, withholding tax for employees and capital gains withholding tax will also be paid in dollars or Rufiyaa. However, if the income of the taxpayers is in a currency other than Rufiyaa, the tax will be paid in dollars.

Attorney General Ahmed Usham told a news conference at the President's Office last month that the Cabinet had decided to amend some laws and regulations to increase Maldives' foreign income.