The Maldives tourism industry is set to face significant changes with the introduction of the 14th Amendment to the Maldives Tourism Act.  Among the most notable updates is the increase in the Green Tax (GRT) rates effective from January 2025. On 25^th November 2025, the Maldives Inland Revenue Authority (MIRA) provided further clarity on the revised Green Tax Regulations, outlining how these changes will be implemented across the industry.

The new GRT rates will apply to different categories of tourist establishments as follows:

The GRT is charged based on every 24-hour stay. However, the GRT will only apply for the last 24-hour block if a guest has stayed at least 12 hours before checking out.

Transition for Tourists Checked-in Before 1^st January 2025

• Tourism establishments must carefully apply the correct GRT rates for tourists whose stay spans the transition from 2024 to 2025. If the first 12 hours of the 24-hour block for a tourist on 31st December 2024 ends on or before 23:59 that day, the GRT for this 24-hour block will be charged at the rate applicable till 31st December 2024.
• If the first 12 hours of the 24-hour block on 31st December 2024 ends on or after 00:00 of 1st January 2025, the GRT for this 24-hour block will be charged at the new rate applicable from 1st January 2025.

This nuanced transition requires close attention to check-in/check-out times, especially for tourists who overlap into the New Year.

Exemption for Children Under 2 Years:

From 1st January 2025, children under 2 years of age will be exempt from paying GRT, provided they have not turned two by the check-in date.

Special Handling for Children Checked in Before the New Year:

If your establishment already has a child under 2 years old checked in before 1^st January 2025, you will need to manage their stay in a specific way:

• The Child will need to be checked out at 23:59 of 31^st December 2024.
• Then, a new check-in process should occur at 00:00 on 1^st January 2025. During this second check-in, if the child has turned 2 years old, they will no longer be exempt from GRT.

In addition to managing the new check-in procedures for children, establishments will now be required to maintain the copies of passports of these children staying at their establishments.

Our comments

These changes call for meticulous planning and adherence to the updated guidelines to ensure compliance with the revised GRT regulation.

Tourism operators are encouraged to stay informed and may choose to consult with us for any further clarifications or updates.