Maldives and the Convention on Mutual Administrative Assistance in Tax Matters and Multilateral Competent Authority Agreements

Maldives joined the Global Forum on Transparency and Exchange of Information on Tax Matters (Global Forum) in February 2016. Since then, Maldives Inland Revenue Authority (MIRA) has continuously worked towards the implementation of international tax standards with the guidance provided by the Global Forum.

As a member of the OECD Inclusive Framework on Base Erosion and Profit Shifting (BEPS), Maldives became a party to the Convention on Mutual Administrative Assistance in Tax Matters (MAAC) on 11 August 2021.  In order to implement the MAAC, Maldives also signed the Multilateral Competent Authority Agreement on Automatic Exchange of Financial Accounting Information (CRS-MCAA) and the Multilateral Competent Authority Agreement on the Exchange of Country Reports (CbC-MCAA) specifying the modalities for exchanging information.

MAAC provides an international legal framework for exchanging information and cooperation in tax matters while protecting the taxpayer rights. Further, different forms of administrative cooperation such as Exchange of Information on Request (EOIR), Automatic Exchange of Financial Information (AEOI), Spontaneous Exchange of Information (SEOI), service of documents and assistance in conducting tax examinations will be provided between the members of the convention. Such actions will aid MIRA to combat non-compliance through tax evasion and avoidance. 

The Multilateral Competent Authority Agreement on Automatic Exchange of Financial Accounting Information (CRS-MCAA) will allow MIRA access to financial information of Maldivian tax residents that hold financial accounts in countries participating under this convention. Financial accounting information of all individuals and entities with a balance more than USD 25,000 can be requested by MIRA with regards to investigations and exchanged spontaneously as well. Similarly, under the Multilateral Competent Authority Agreement on the Exchange of Country Reports (CbC-MCAA) MIRA will have access to financial information of Multinational Enterprises with a group consolidated revenue of €750 million and have constituent entities that are resident in Maldives and operate in jurisdictions of member countries.

MIRA works closely with the Tax Policy Unit of Ministry of Finance to implement necessary laws and policies to adhere with this international commitment. MIRA has continuously worked to successfully administer these international standards by collaborating with relevant stakeholders. To streamline implementation process of the standards, MIRA has conducted information sessions for relevant government institutions and financial institutions in collaboration with Global Forum.

Committing to AEOI standards:

MIRA has taken effective measures to ensure that the relevant confidentiality and data safeguards standards are met. Changes have been brought to the domestic legislation to allow exchange of information as per EOIR and AEOI standards and to ensure the confidentiality of the data exchanged. In addition to this, MIRA is determined to continuously review and monitor organizational policies and systems to ensure confidentiality of exchanged data.

This powerful new tool will allow MIRA to identify cases of tax evasion and avoidance leading to higher levels of tax collection.