Instructions for Completing BPT Return 304 Instruction v13 1 (English... · BPT Return (MIRA 304...

BPT Return (MIRA 304 Version 13.1) Instructions 1

Instructions for Completing BPT Return

(MIRA 304 Version 13.1)

All legislative references are to the Business Profit Tax (BPT) Act (Law Number 5/2011) and the BPT

Regulation (Regulation Number 2011/R-35) as amended by Regulation Number 2011/R-47 and Tax Ruling

Number TR-2012/B6, TR-2012/B11 and TR-2012/B27

- Individuals, companies, partnerships and other corporate bodies registered at MIRA under Tax

Administration Act (Act No. 3/2010) are required to file this return once a year. However, individuals

whose annual gross income is less than MVR 750,000 and taxable profit is less than MVR 500,000 are

exempted from filing tax return to MIRA.

- Please round off all figures on your Return to the nearest whole number.

- When you submit your Return, please ensure that we give you a voucher for it.

- Box 29 to 45 must be written with a minus sign (-) in front.

BPT TIN (Taxpayer Identification Number)

Your TIN is a unique identification number issued to you when you registered with MIRA under the Tax

Administration Act. The TIN is stated on the Notification of Registration issued to you. We cannot acknowledge

or process your Statement without your correct BPT TIN.

Taxpayer Name

In this box enter the name of the taxpayer as shown on the Notification of Registration.

Accounting Period

For individuals who choose to prepare:

- special purpose financial statements, the accounting period will be from 18 July 2011 or the start of your

accounting period (whichever is the later) to the end of your accounting period.

- full year financial statements, the accounting period will be from the start of your accounting period to

the end of your accounting period.

For companies, partnerships and other legal entities, the accounting period is the accounting period registered

with MIRA. This period must be adopted in the financial statements which are submitted along with the BPT

Return.

If you are using the fillable version, make sure that you enter the correct accounting period in this Box since the

calculations are based on the accounting period which is entered in the form.


Auditor Registration Number

Fill this part if you are required to appoint an auditor. If not, leave this part blank. Enter here the registration

number of the auditor who audited your financial statements.

COMPUTATION OF TAX PAYABLE

Before completing the “COMPUTATION OF TAX PAYABLE” on Page 1, fill in pages 2 to 7.

BUSINESS PROFIT TAX ASSESSMENT

All taxpayers must fill in Part I and Part II of page 2.

I. The amounts on this Return are based on:

Choose the type of financial statements and accounting period that you used to calculate your taxable profit.

You may use:

(a) special purpose financial statements which cover the period from 18 July 2011 or the start of your

accounting period (whichever is the later) to the end of your accounting period; or

(b) financial statements for the full accounting period (usually 12 months), from the start of your

accounting period the end of your accounting period.

If you are using the fillable version of MIRA 304, the form will automatically select this option based on the

accounting period stated.

If you choose (a), the amounts that you enter in Section A or Section B must be only for the period from 18

July 2011 or the start of your accounting period (whichever is the later) to the end of your accounting period.

You must attach special purpose audited financial statements along with your BPT Return.

If you choose (b), the amounts that you enter in Section A or Section B must be for your full accounting

period and you must attach the financial statements of this period with the BPT Return.

Note:

(1) You are required to submit the BPT Return only if your accounting period ended on or before 31 December

2012.


II. What is the basis of preparing your accounts?

This is the basis of preparing your accounts, which you have elected under Section 8(c) or (d) of the

Regulation.

(a) Accrual basis, tick here, if your annual total turnover is more than MVR 5 million or is less than

MVR 5 million but you choose to prepare your accounts in accrual basis.

If accrual basis is adopted, accounts should be prepared in accordance with International financial

reporting standards (IFRS) or any other international accounting standards acceptable to MIRA.

Under accrual accounting, income and expenses are recognized when they become due regardless of

the date of receipt or payment.

Following are the MIRA approved International Accounting Standards;

IFRS;

IFRS for SMEs; and

AAOIFI Standards

(b) Cash basis, tick here, if your annual total turnover is less than MVR 5 million and you opt to prepare

accounts on cash basis. Under cash basis accounting, income is recognized when cash is received

and expenditure is recognized when cash is paid.

III. What is your presentation currency?

Presentation currency refers to the currency in which you prepare your financial statements.

If your functional currency (i.e. the currency in which you carry your transactions) is:

(a) Rufiyaa (MVR), then your financial statements should be in Rufiyaa.

(b) United States Dollar (USD), then your financial statements should be in USD

(c) a currency other than MVR or USD, then your financial statements can be either in MVR or USD.

Note: if your presentation currency differs from your functional currency, you must translate your financial

statements by applying the principles in International Accounting Standard 21 (The Effects of Changes in Foreign

Exchange Rates), using a rate within ±2% of the rate published by the Maldives Monetary Authority, on the

transaction date.


SECTION A and SECTION B

There are two sections in this part of the BPT Return: Section A and Section B.

If you earn only rental income from immovable property in the Maldives and you choose the 20% deduction

option given under Section 9(b) of the Act, complete Section A ONLY.

Complete ONLY Section B if you are a company, partnership or an individual earning:

Business income; or

Only rental income and you have not made an election under Section 9(b) of the Act; or

Both rental and business income.

SECTION A

Fill in this section if you earn ONLY rental income from immovable property in the Maldives and if you choose

to deduct 20% of that rental income (the option given under Section 9(b) of the Act). Round off all figures on

your Return to the nearest whole number.

1. Rental Income

Enter the total amount of rental income that you have received from rent of immovable property. This

amount must be the aggregate of the following amounts:

(1) all rental payments received in relation to the immovable property; and

(2) security deposits, advance rental payments and any other payments received in relation to the

immovable property, to the extent the lessor of the property has the right to consume part or full

payment of it within a tax year; and

(3) all payments received in relation to the rented property not resulting from the responsibilities of

the lessee specified in the lease agreement; and

(4) payments received in respect of anything affixed to the immovable property; and

(5) payments received under an insurance policy obtained to compensate for the non-payment of

rent; and

(6) any payment received for breach of a lease agreement by the lessee.

2. 20% of rental income

Calculate 20% of the rental income by multiplying the amount in Box 1 (Rental Income) by 0.20.

If you are using the fillable version, this figure will be calculated automatically.


3. Profit / (loss) before adjustments

Calculate your rental profit or loss by subtracting Box 2 (20% of rental income) from Box 1 (Rental

Income).


4. Apportioned profit / (loss) before adjustments

If you have selected option I(a) on page 2 of the Return, your apportioned profit/loss before adjustment

is the same amount in Box 3 (Profit / (loss) before adjustments). Transfer this amount to Box A on page 1.

If you have selected option I(b), you must enter the amount calculated using the formula below.

( )

× Box 3

Transfer this amount to Box A in page 1. In the fillable version this figure will be automatically

transferred to box A in page 1.

SECTION B

Fill in this section if you earn:

Business income; or

Only rental income and you have not made an election under Section 9 of the Act; or

Both rental and business income.

Round off all figures on your Return to the nearest whole number.

5. Accounting profit / (loss) before tax

Enter the net profit / (loss) before tax stated in your Statement of Comprehensive Income (Profit and

Loss Statement).

If you have earned rental income and if you have chosen to deduct 20% from your total rental income

(the option given under Section 9(b) of the Act) then fill in Boxes 6 to 9 only. If not, leave Boxes 6 to 9

blank and go to Box 10.


6. Rental income

Enter the total amount of rental income that you have received from rent of immovable property

included in your accounting profit. This amount must be the aggregate of the rental income listed in

page 4 of this document.

7. 20% of rental income

Calculate 20% of your rental income by multiplying the amount in Box 6 by 0.20.


8. Expenses incurred to generate rental income included in the income statement

This is the amount of expenses which are related to your rental business. These expenses have already

been deducted in arriving at your net accounting profit/ (loss).

9. Adjustment to accounting profit / (loss)

This is the difference between 20% of your rental income and the expenses incurred to generate the

rental income. Calculate this adjustment by deducting Box 7 from Box 8. If Box 7 is greater than Box 8,

this will be a negative figure. If you are filling this Return manually, put a minus sign (-) in front of this

figure. If you are using the fillable version, it will automatically do so.

Add: Non-deductible expenditure

10 – 27. Non-deductible expenditure

Boxes 10 to 27 show the amounts of accounting expenditure which are not deductible in calculating your

taxable profit. However, as some of these expenses can be deducted subject to restrictions, they are

included under the heading ‚Deductions allowed‛. Fill in Boxes 10 to 27 by stating the amounts as in

your financial statements. If you enter an amount in Box 27, you must attach explanations and

supporting documents.

You must NOT include any expenditure in Boxes 10 to 27 which have already been included in Box 8.

All the expenses paid to Persons specified in Section 11(c) of the Act, should be stated in Box 20. The

amount in Box 20 must include the remuneration paid or payable in that tax year to persons who are

related to sole proprietors (Refer to Tax Ruling: 220-PR/TR/2012/B1). You must NOT include any

expenditure in Boxes 10 to 27 which have already been included in Box 20.

https://www.mira.gov.mv/rulings/Tax%20Ruling%202012-B1%20%28English%29.pdf


28. Total disallowed amount

Box 28 shows the total amount of expenses which cannot be deducted when calculating your taxable

profit. To derive this amount you must add up Boxes 10 to 27.


Less: Deductions allowed

Boxes 29 to 44 show the amounts deductible when calculating your taxable profit. These are the expenses which

can be deductible subject to certain restrictions. All the other expenses which are related to your business have

already been deducted when calculating your accounting profit. You must not include any deduction in Boxes

29 to 44 in respect of expenses incurred to derive rental income if you have made an election under Section 9(b)

of the Act.

Boxes 29 to 44 must be written with a minus sign (-) in front.

29. Capital allowance

A capital allowance is a tax allowance given to replace the accounting depreciation, for which a tax

deduction is not available under Section 11 of the BPT Act.

In Box 99 enter the total amount in your Statement of Capital Allowance. To derive this figure, fill in the

STATEMENT OF CAPITAL ALLOWANCE on page 5. In the fillable version the capital allowance

figure will automatically be transferred to Box 29.

You must calculate the amounts referred to in the Statement of Capital Allowance for each individual

asset and enter the total amounts for each asset category.

STATEMENT OF CAPITAL ALLOWANCE

Column 1: Rate (%) is the capital allowance rates specified under Section 50, of the Business Profit Tax

Regulation.

Column 2: Cost of assets refer to the assets which have positive written down value on the commencement of the

accounting period

plus cost of assets acquired during the accounting period (which have been used for more than half of the

accounting period),

minus cost of assets disposed during the accounting period

Column 3: Capital allowance at cost

Apportion the figures in this column from 18 July 2011 or the start of your accounting period (whichever is the

later) to the end of your accounting period.

(a) For tangible assets: Column 1 multiplied by column 2.

(b) For intangible assets: Cost price of the intangible asset divided by its estimated useful life (in years).


Column 4: Accumulated capital allowance claimed is the notional adjustment to the cost of assets held at the

date of commencement of the Act

plus capital allowance claimed for the preceding years.

Column 5: Written down value

Is the cost of asset (Column 2) minus the accumulated capital allowance claimed (Column 4).

Column 6: Claimable capital allowance

Lower of;

(a) Capital allowance at cost (Column 3) and

(b) Written down value (Column 5).

30. Balancing allowance

Balancing allowance is an allowance given for loss on disposal of assets.

In Box 30 enter the total amount in your Statement of Balancing allowance/ Balancing charge. To derive

this figure, fill in the STATEMENT OF BALANCING ALLOWANCE/BALANCING CHARGE FOR

ASSETS DISPOSED DURING THE ACCOUNTING PERIOD on page 6.

STATEMENT OF BALANCING ALLOWANCE/BALANCING CHARGE

The amounts for each column must first be calculated separately for individual assets and the sum for the category

must be posted in each column. Do NOT sum up the value for each category of asset before making the calculations

separately for individual assets, as it would distort the balancing allowance/balancing charge figure.

Column 7: Cost of disposed assets is the actual cost of the individual asset disposed.

Column 8: Accumulated capital allowance claimed for the disposed asset is the accumulated capital

allowance claimed for the disposed asset after the commencement of the Act (18 July 2011).

Column 9: Written down value is the cost of the asset minus accumulated capital allowance claimed (notional

adjustment plus capital allowance claimed for the preceding years).

Column 10: Disposal value is the sale price proceeds from disposal of the asset, i.e. the consideration from the

sale of the asset less expenses directly related to the sale of the asset.

Column 11: Gain/loss on disposal of asset is the disposal value of the asset (Column 10) minus the written

down value of asset (Column 9).

Column 12: Capital gain is the disposal value of the asset (Column 10) minus the cost of the disposed asset

(Column 7). If the answer is negative, enter zero.

Column 13: Capital gain is the value of capital gain (Column 12) plus lower of the accumulated capital

allowance claimed for the disposed asset (Column 8) and the gain/loss on disposal of the asset (Column 11). If the

answer is positive, enter the amount as a balancing charge in Column 13.1. If the answer is negative, enter the

amount as a balancing allowance in Column 13.2.


Total column 13.1 and transfer the figure to Box 24. Total column 13.2 and transfer the figure to Box 30.

If you are using the fillable version, these figures will automatically be transferred to box 24 and box 30.

31. Allowable head office expenses

You should enter an amount here only if you are a permanent establishment of a non-resident.

Head Office refers to ‚the head office of the Person that owns the permanent establishment; or any other

permanent establishment of the Person that is situated outside the Maldives; or any other Person associated with

the Person.”

Head office expenses include expenditure on consultants, research and development, data processing,

the right to use intangible or intellectual property, general administration costs and other such

expenditure incurred by your head office which relates the permanent establishment in the Maldives.

The maximum amount which you can deduct as head office expense is the lesser of:

(a) The amount of head office expenses deducted when calculating your accounting profit. This is

the amount in the Box 11.

(b) 3% of the gross income from your trading operations.

In Box 31 state the lower of 3% of your gross income from trading operations and the amount in Box 11.

32. Employee welfare expenses allowed under Section 30 of the Regulation

In Box 32 enter the total of payments made:

(a) to an employee who is incapacitated on medical grounds; or

(b) to the surviving spouse or children under 18 years of age of a deceased employee; or

(c) to a fund approved by MIRA and established for the benefit of the employees to receive medical

and other welfare support; or

(d) for the promotion of general employee welfare, without discrimination amongst the employees.

33. Pension expenses allowed under Section 32 of the Regulation

This is the amount you have paid to the Maldives Pension Administration Office (MPAO). You must

hold a receipt from MPAO to support this amount.


34. Irrecoverable debts relating to transactions that occurred during this accounting period

If you have selected I(a) at the top of page 2, enter the amount of irrecoverable debts which relate to

transactions made after 18 July 2011. If you have selected I(b) enter the amount of irrecoverable debts

which relate to transactions made during the accounting period.

According to normal accounting practices, you can only deduct the whole or part of any debt that has

become irrecoverable in respect of a particular transaction under the following circumstances:

(a) a court issues a judgment that the whole or part of the debt is irrecoverable;

(b) the debtor has been liquidated or adjudged bankrupt;

(c) the debt is written off as irrecoverable in accordance with the accounting standard adopted by

you.

35. Receipts which have suffered withholding tax

You should enter an amount here only if you are a permanent establishment of a non-resident. This is

the total amount of your income from which WHT has already been deducted.

36. Loan interest to approved institutions

Approved institutions refer to the banks and financial institutions licensed by the central bank of the

country of operation of that bank or financial institution and certain international financial institutions.

Enter the full amount of interest paid to such banks and institutions in Box 36. Refer to Tax Ruling: TR-

2012/B2 (20 March 2012) for the list of approved banks and financial institutions.

37. Loan interest to individuals and non-approved institutions at a rate not exceeding 6% per annum

Interest paid to Persons other than approved banks and financial institutions can be deducted only up to

6% per annum. of the loan amount. In Box 37 enter the amount which is lower of 6% per annum. of the

principal amount of the loan from non-approved lenders and the actual amount of interest paid to those

lenders.

38. Zakat al-mal allowed under Section 23 of the Regulation

This is the amount of Zakat al-mal paid during the accounting period to the Ministry of Islamic Affairs or

other relevant government authority. You must hold a receipt from the Ministry of Islamic Affairs or

other relevant government authority stating the amount of Zakat al-mal you have paid. In Box 38 enter

the amount stated on the receipt.

http://www.mira.gov.mv/rulings/Tax%20Ruling%202012-B2%20%28English%291.pdf



39. Cost of low-value assets allowed under Section 43 of the Regulation

You may deduct in full the expenditure on the acquisition of a capital asset and like assets acquired at

the same time which does not exceed MVR 5,000. The aggregate of this expenditure must not exceed

MVR 100,000. The amount deducted here must not be included in Column 2 on page 5

40. Unrealised accounting gains in relation to non-current assets and liabilities

These are unrealised gains at the end of your accounting period in relation to non-current assets and

liabilities which have been included in arriving at your accounting profit / loss.

41. Gain on disposal of non-current assets subject to the balancing allowance or balancing charge

These are realized profits from disposal of non-current assets and liabilities which have been included in

arriving at your accounting profit / loss.

42. Provision for unearned income and reversals of expenditure provisions

State here the total amount recorded as income in the income statement due to provisions for unearned

income and the reversal of previous accounting provisions for expenditure created since 18 July 2011 or

the beginning of your accounting period whichever comes later.

43. Dividend received from resident companies

State here the total amount of dividend which you have received or is receivable from resident

companies which you have included in your total revenue. Please attach explanations if you have

entered any figure in this box.

44. Other expenses deductible

This is the total amount of other deductible expenses which you have not deducted when calculating

your accounting profit. If you enter any amount in this Box, attach explanations and supporting

documents with the Return.

45. Total allowable amount

This is the total amount which can be deducted when calculating your taxable profit. Calculate this

figure by adding up Boxes 29 to 44.



46. Specified profit / (loss)

Specified profit refers to the taxable profit before deducting donations and directors’ remuneration. To

calculate your specified profit, you must add Boxes 5, 9, 28 and 45.


Less: Remuneration

This is the remuneration or benefits given to Persons specified in Section 11(c) of the Act. If the remuneration or

benefit is not paid in money, it must be valued at its open market value. The maximum amount deductible is

10% of your specified profit.

47. 10% of specified profit

To calculate 10% of specified profit, you must multiply Box 46 by 0.10. If Box 46 is negative, enter 0

(zero).


48. Remuneration paid to persons specified in Section 11(c) of the Act

In Box 48 enter the actual amount of remuneration expense paid to the Persons specified in Section 11 (c)

of the Act. This is the amount stated in Box 20.

If you are using the fillable version, this figure will be transferred automatically.

49. Allowable remuneration

In Box 49 enter the amount which is lower of Box 47 (10% of your specified profit) and Box 48 (actual

amount paid as remuneration).


50. Taxable profit / (loss) before donations

This is your profit / (loss) before deducting donations. You must subtract the amount in Box 49

(Allowable remuneration) from the amount in Box 46 (Specified profit / (loss)).



Less: Donations made to approved charitable organisations

Donations made to a body, association or public institution which is approved by MIRA and established for the

promotion of Islam, relief of the poor, medical relief or education or any other object of similar general public

utility are deductible in the calculation of your taxable profit (Refer to Tax Ruling: TR-2012/B7). The list of MIRA

approved bodies, associations and public institutions are available on our website (www.mira.gov.mv). If assets

are donated, you can only deduct the value of the assets which you have donated within 12 months of their

acquisition.

In support of your claim, you must hold a receipt from the organisation to which you have made the donation.

The maximum amount deductible as donations is 5% of the taxable profit before deducting donations and loss

relief.

51. 5% of taxable profit / (loss) before donations

To calculate 5% of taxable profit, you must multiply Box 50 (Taxable profit / (loss) before donations) by

0.05. Enter the answer in Box 50. If Box 50 is negative, enter 0 (zero) in Box 51.


52. Donations to approved charitable organisations

In Box 52 enter the total amount in your Statement of Donations. To calculate this figure, fill in the

STATEMENT OF DONATIONS on page 7.

STATEMENT OF DONATIONS

Column 1: Date of donation is the date on which you made the donation.

Column 2: Name of donee is the name of the body, association or public institution approved by the MIRA to

which you made the donation.

Column 3: Details of donation – if the donation has been made in money, write “Cash”. If the donation has been

made in kind, write the details of the assets which you have donated, including the date of acquisition of the asset

and the type of asset.

Column 4: Amount of donation – if the donation has been made in money, enter the amount of your donation. If

the donation has been made in kind, enter the cost of the asset you have donated.

Note: a deduction cannot be allowed for assets which have been donated after one year from the purchase date.

If you are using the fillable version and if the Statement of Donations is not enough, you may use

additional sheets. Enter the total amount of donation in the additional sheets in column 4 in row 15.

Total column 4 and transfer the total amount to Box 52.

In the fillable version, the total amount in this statement will automatically be transferred to Box 52.


http://www.mira.gov.mv/


53. Allowable donations

Enter the amount which is lower of Box 51 (5% of taxable profit before donations) and Box 52 (Donations

to approved charitable organisations).

If you are using the fillable version, the form will calculate this amount automatically.

54. Profit / (loss) before adjustments

To calculate this figure, subtract Box 53 (Allowable donations) from Box 50 (Taxable profit / (loss) before

donations).


55. Apportioned profit / (loss) before adjustments

If you have selected option I(a) on page 2 of the Return, enter in Box 55 the amount in Box 54 (Profit /

(loss) before adjustments). Transfer this amount to Box A on page 1. If you have selected option I(b),

enter the amount calculated using the formula below:

( )

× Box 54


Transfer this amount to Box A on page 1. In the fillable version this figure will be automatically

transferred to Box A in page 1.

Note:

(1) Your accounting period must end on or before 31 December 2012.


ADDITIONAL INFORMATION

If you are preparing accounts on accrual basis, you must fill Boxes 56 to 65. If you are preparing accounts on

cash basis, you must fill Box 56, 57 and 65.

56. Revenue for the period

Enter the amount of revenue stated in your Statement of Comprehensive Income (Profit and Loss

Statement).

57. Gross profit

Enter the amount of gross profit stated in your Statement of Comprehensive Income (Profit and Loss

Statement).

58. Total assets

Enter the amount of your total assets at the beginning and end of the accounting period as stated in your

Statement of Financial Position (Balance Sheet).

59. Total fixed assets

Enter the amount of your total fixed assets at the beginning and end of the accounting period as stated in

your Statement of Financial Position (Balance Sheet).

60. Total liabilities

Enter the amount of your total liabilities at the beginning and end of the accounting period as stated in


61. Trade Receivables

Enter the amount of your trade receivables at the beginning and end of the accounting period as stated

in your Statement of Financial Position (Balance Sheet).

62. Non-current debt

Enter the amount of your total non-current debt at the beginning and end of the accounting period as

stated in your Statement of Financial Position (Balance Sheet).

63. Inventory

Enter the amount of your inventory at the beginning and end of the accounting period as stated in your

Statement of Financial Position (Balance Sheet).


64. Total equity

Enter the amount of your total equity at the beginning and end of the accounting period as stated in


65. Number of employees

Enter the number of employees at the end of your accounting period, stating the number of Maldivians

and expatriates separately.

COMPUTATION OF TAX PAYABLE

A. Profit / (loss) before loss relief

Transfer the amount in Box 4 (if you completed Section A) or Box 55 (if you completed Section B) to this

box.

If you are using fillable version, this box will be filled automatically.

B. Loss carried forward from tax year 2011

If you incurred a loss in the tax year 2011, enter the figure in Box B. If you enter an amount in this box

you must attach explanations and supporting documents.

C. Loss of holding company or 99% owned subsidiary

This is the amount of loss (or part of the loss) incurred by a company in a group of companies which

may be offset against the amount in Box A. In accordance with Section 37 of the Regulation, this amount

can be deducted only by a holding company that owns 99 per cent of the company which incurred the

loss, or by another subsidiary company 99 per cent of which is held by that holding company.

The total amount deducted as loss from the profit of companies in that group of companies under

Section 37 of the Regulation should not exceed the total amount of loss incurred by the loss-making

company.

D. Taxable profit / (loss)

To calculate this figure you must subtract Box B (Loss carried forward from tax year 2011) and Box C

(Loss of holding company or 99% owned subsidiary) from Box A (Profit / (loss) before loss relief).

If you are using fillable version, this box will be calculated automatically.


E. Tax-free threshold

Use the formula below to calculate your tax-free threshold.

( )

×

For companies in a group, the tax-free threshold must be divided among the companies in the group. If

you are such a company, A is the number of subsidiaries in the group that are subjected to BPT. In all

other cases, A is 0 (zero). If your return is completed in United States Dollar, replace MVR 500,000 with

USD 32,425.

Note: the number of days in any tax year will be 365 days regardless of whether it is a leap year or not.

F. Profit subject to tax

Since only the excess amount after deducting the threshold is subject to tax, you must deduct Box E

(Tax-free threshold) from Box D (Taxable profit).


G. Tax liability for the year

You should tick 15% and multiply Box F (Profit subjected to tax) by 0.15. The 15% rate applies to most

taxpayers. However, companies which meet all of the conditions mentioned below must tick 5% and

multiply Box F (Profit subjected to tax) by 0.05.

- The company is registered under the Companies Act of Maldives (Act Number 10/96) and is not a

resident outside Maldives.

- The company derives income in that period from business carried on wholly outside the Maldives

or investments with non-residents.

- The company does not carry on any other business or have any other source of income.

H. Foreign tax credit

Enter the amount of tax that you have paid to foreign countries. If you enter an amount in this box you

must attach explanations and supporting documents.

In accordance with Section 53 of the Tax Administration Act, the maximum amount of foreign tax credit

cannot exceed 15% (or 5%, if you ticked 5% in Box G) of the amount of foreign income subject to foreign

tax.

I. Tax payable for the year

This is the amount of tax payable for tax year 2012. To calculate this figure, subtract Box H (Foreign tax

credit) from Box G (Tax liability for the year).



J. First Interim payment

Enter the amount of tax that you have paid as your first interim payment.

K. Second Interim payment

Enter the amount of tax that you have paid as your second interim payment.

L. Excess payments

Enter the amount of excess tax paid, if any.

M. Final payment

The amount you obtain after deducting Box J (First interim payment), Box K (Second interim payment)

and Box L (Excess payments) from Box I (Tax payable for the year) is the final payment that you are

required to pay to MIRA.


Document Checklist

Tick the documents that you have attached with the Return. MIRA has the right to reject your Return if you

submit it without your financial statements and supporting documents for Boxes B, C, H, 27, 43 and 44.

Declaration

The declaration must be signed by the applicant or the authorized representative of the taxpayer. State your

‘Title’, ‘First Name’, ‘Other Names’ (name should be stated as it appears on your National ID Card / Immigration

ID Card), ‘Contact Number’, ‘Designation’ and the ‘Date’ the declaration is signed. Companies, partnerships,

trusts, cooperative societies and other legal entities must stamp their official seal next to the signature.

For office use only

Leave this part blank.

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