Deadline extended for BPT payments

Maldives Inland Revenue Authority (MIRA) has once again extended the deadline for payment of Business Profit Tax (BPT).

MIRA extended this month’s deadline until 30 September, while last month’s deadline has been extended until 15 September.

Speaking at a press conference held today, Commissioner of Taxation Yazeed Mohamed said that several companies have complained that more time is required to pay BPT.

He noted that several companies settled BPT following the earlier extension of the deadline.

“Preparation of financial statements was not according to standards before. Paying BPT involves a long procedure, which includes employing auditors to prepare financial statements. We understand that more time is required to do this, so we decided to extend the deadline,” he said.

He informed that employees of MIRA worked with receiving BPT payments until 3:00 last night, and that MVR40 million was received last night alone as BPT.

MIRA has received a total income of MVR1.3 billion as BPT.

MIRA has made four decisions in order to encourage small businesses, including exemption from BPT payments of companies which have not had any transactions prior to 18 July 2011 and submitted forms to dissolve the businesses.

Yazeed informed that over 4,000 registered companies do not actively conduct any business.

MIRA has also decided that its officials will visit small businesses to prepare tax statements. These companies also do not have to pay the MVR250,000 fine; rather, they only have to pay the smallest fine mentioned in the regulations.

Because companies are required to pay BPT and submit tax statements before 30 September, MIRA has allowed this year’s payments to be made in three instalments. Those companies which wish to do this must however register with MIRA, and will also have to pay a fine of five percent.

MIRA has increased the number of counters to accept payments to meet the rise in the number of companies wishing to settle payments before the deadline. Queues were formed near MIRA, and queue numbers for making payments were issued until 22:00 last night.