Maldivian authorities have delayed the introduction of a 17% tourism tax for foreign companies until 2027

The Maldivian authorities have postponed the introduction of a 17% tourist tax for foreign business representatives until April 1, 2027, the Russian Union of Tourism Industry (RST) reported.

Earlier, ATOR reported that from October 1, changes to the tax legislation of the Maldives will come into force, which will oblige foreign tour operators, travel agencies and online booking systems to register with the tax service of the republic and pay a tourist tax at a rate of 17 on the sale of services in the archipelago.

“The Maldivian authorities have postponed until April 1, 2027 the application of the 17th Tourism Goods and Services Tax (TGST) on foreign tour operators, travel agencies and foreign booking platforms,” said Maldives Minister of Tourism and Civil Aviation Muhammad Amin, as quoted by PCT.

According to PCT board member and CEO of tour operator Space Travel Artur Muradyan, the decision to postpone is assessed by Russian business as positive. “It is especially important that the decision was made at the beginning of the high winter season, when a significant part of the tours have already been contracted and are sold at set prices,” he explained.

In addition, now the Maldivian authorities and tourism market participants have additional time to develop a clear and practically implementable mechanism that would not create additional barriers for foreign partners and would not affect the cost of holidays for tourists.