On 12 September 2019, the Second Amendment to the Tax Administration Act (Law No. 13/2019) became law upon its ratification by the President.

The salient points of the Amendment are listed below.

• The composition of the board of directors of Maldives Inland Revenue Authority (MIRA) has been changed and will now comprise the following seven members:
  • the person appointed by the Minister for Finance to oversee the tax policy function at the ministry. The person will also act as the chairperson of the board;
  • 5 members appointed by the President with the approval of the parliament; and
  • commissioner General of Taxation (CG), who will not have voting rights.
• Five years has now been defined for the appointment term of the CG and the Deputy CG. Prior to the Amendment, a specific term was not defined in the law.
• The CG and the Deputy CG can be appointed for a maximum of two terms of 5 years each. A new CG and Deputy CG must be appointed within 30 days of the enactment of the Amendment.
• The MIRA may require the parent entity of a multinational company which is resident in the Maldives, to furnish information pertaining to the business operations and management of the group, or a country-by-country report, in a manner prescribed by regulations.
• Taxpayers may object to any decision of the MIRA or the CG. The MIRA is obliged to make a decision with respect to an objection within 120 days, of which failure to do so would render the original decision invalid.
• Taxpayers may appeal a decision of the MIRA pursuant to an objection, within 30 days, after paying 30% of the amount in dispute. Prior to the Amendment, the full amount in dispute including penalties and all other outstanding dues must be paid in order to be eligible to appeal.