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MALDIVES INLAND REVENUE AUTHORITYMald, Republic of Maldives

Reference Number:

Date:

To:

Subject:

220-PRrI.W20LU2

30 October 20llAll GST Registered Persons

Application Section lffi(a) of the Goods and Services Tax

Regulation

Excerpt from the Goods and Services Tax Regulation

100. (a) Notwithstanding Sections I7(a) and I7(b) of the Act, where a person registered

with the MIRA other than under the Tourism Goods and Services Tax Act (I-aw

Number l9nM0), signs an agreement before the ratffication of the Act for the

supply of goods or services, and the agreement was entered into under the

supplier's normal commercial practices, And work on the delivery of the goods

and services so mentioned in the agreement has begun prior to the ratffication of

the Act, tax shall not be chargeable on that supply tf the tax invoice is issued or

part or whole of the payment is received for that supply within I (one) year fromthe date of commencement of the Act.

For a contract to be eligible for the leeway granted under section 100(a) of the Goods and

Services Tax Regulation, all of the following conditions must be satisfied:

The contract shall not relate to the supply of a good or service that would have been

subject to tax under the Tourism Goods and Services Tax Act; and

The contract must have been signed before 2 September 2011; and

Maldives Inland Revenue Authority, T-Building, Ameenee Mugo, Male' 20379, MaldivesTel: (960) 3322261,Fax: (960) 331 6577,E-mail: info@mira.gov.mv, Website: www.mira.gov.mv

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The contract must have been entered into under your normal commercial practices;

and

Work on the delivery of the goods and services mentioned in the contract must have

begun prior to 2 September 2011; and

Either party to the contract must not have agreed to bear or pay taxes or fees

introduced after the date of contract; and

The value of goods and services to be supplied under the contract must have been

predefined in the contract.

GST registered persons falling within section 100(a) of the Goods and Services Tax

Regulation, performing contracts that satisfy the conditions above, are required to register

such contracts with the MIRA on or before 28 November 201 1, in order to opt in to S.100(a)

Scheme and be eligible to claim input tax pertaining to such contracts. Input tax pertaining to

contracts not registered with the MIRA by the deadline shall only be deductible in taxable

periods that the contract is registered with MIRA. Further such contracts must satisfy the

conditions above.

In order to register your contracts, please complete and submit MIRA 107 tS.l00(a)Contracts Registrationl, which is attached with this Tax Ruling and available for download

from our website. You are required to submit copies of all eligible contracts along with the

registration form.

Once the contracts are registered, the following procedures shall be followed:

1. MIRA shall issue a unique ID upon registration for each contract registered under this

Tax Ruling.

Registered persons shall not charge GST (i.e. output tax) on transactions whose time

of supply falls between 2 October 2011 and 1 October 2012. This means that

registered persons shall not charge GST when they prepare tax invoices or receive

payments under such contracts on or before I october 2012.

Registered persons may claim input tax pertaining to expenditure that is directly

attributable to such contracts, in their GST returns. Input tax shall not be deducted

Maldives Inland Revenue Authority, T-Building, Ameenee Magu, Male' 20379, MaldivesTel: (960) 332 2261, Fax: (960) 33 t 6Sll,E-mail: info@mira.gov.mv, Website: www.mira.gov.mv

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based on tax invoices that do not satisfy the requirements of section 42(a) of the

Goods and Services Tax Act. In addition, input tax shall not be claimed against tax

invoices which have not been settled as of the date of filing the relevant GST return.

Registered persons must submit a Statement of Input Tax (refer to Annex l)separately for each registered contract, and submit copies of all tax invoices included

in the Statement, along with their GST returns.

Registered persons must submit a quarterly Contract Progress Report (refer to Annex

2) as follows:

(a) Report for October to December2011, to be submitted by 28 January 2OI2

(b) Report for January to March 2012, to be submitted by 28 April 2012

(c) Report for April to June 2012, to be submitted by 28 July 2OI2

(d) Report for July to September 2012, to be submitted by 28 October 2012

Failure to submit the quarterly Contract Progress Report may result in not being able

to claim input tax pertaining to contracts specified under S.100(a) Scheme.

Where, other than a variation specified in a contract which does not result in any

further work, the terms of the contract are reviewed after 2nd September 2}ll,registered persons must account for GST on all the transactions under the contract

whose time of supply falls after the reviewed date.

The leeway granted under section 100 (a) of the Goods and Services Tax Regulation

shall cease after I October 2Ol2 and the Registered persons shall account for GST on

all transactions whose time of supply falls after 2 October 2012.

Should you have any queries, please call us at I4L5 or email us at tef@mira.gov.mv.

azeed Moh

ommissioner General of Taxation

*AOin", Inland Revenue Authority, T-Building, Ameenee Magu, Male' 20379,Maldives

Tel: (960) 332 2261, Fax: (960) 331 6577, E-mail: info@mira.gov.mv, Website: www.mira.gov.mv

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Thank you,

Annex 1: Statement of Input Tax

Statement of Innut Tax

TIN:

Taxpayer Name:

Taxable Period:

Contract ID*:

* This field needs to be completed only by persons that had opted in to S.100(a) Scheme.

Maldives Inland Revenue Authority, T-Building, Ameenee M4gu, Male' 20379, Maldives

Tek (960) 3322261,Fax: (960) 3316577,E-mait info@miragov.mv, Website: www.miragov.mv$'

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Annex 2: Contract Progress Report

Contract Progress Report

TIN:

Taxpayer Name:

Reporting Period:

ContractID

Percentageof

Completion

Value ofOutstanding

Work

Proprtion of ImportedMaterials to LocallyPurchased Materials

(Actual to Date)

Details of Changes tothe Contract, if any

Maldives Inland Revenue Authority, T-Building, Ameenee Magu, Male' 20379, MaldivesTel: (960) 332 2261, Fax: (960) 33 | 6577, E-mail: info@mira.gov.mv, Website: www.mira.gov.mv

MIRA 107Version 11.1

Your TIN as it appears on your GST Registration Certificate

TIN (Taxpayer Identification Number)

Name of your taxable activity as it appears on your GST Registration Certificate

Taxpayer Name

Contracts Registration

Contract DescriptionDate of

Commencementof Contract

Estimated Dateof CompletionClient Name Date of Contract

Percentage ofCompletion as of2 October 2011

Value of OutstandingWork as of

2 October 2011Contract Value

Proportion of ImportedMaterials to LocallyPurchased Materials

(Estimate)

Subcontractors(if any)

Contract ID(Office Use Only)

Please use additional copies if necessary

Maldives Inland Revenue Authority, T-Building, Ameenee Magu, Male’ 20379, Republic of Maldives, Hotline: 1415, Phone: (960) 332 2261, Fax: (960) 331 6577, Email: info@mira.gov.mv, Web: www.mira.gov.mv

For Office Use Only

Received By Entered ByReceived Date

D D M M Y Y Y Y

Declaration

I declare that the information in this form is true and correct and that I am authorised to sign this form.

Name

Designation Date Signature & Seal

Contact Number(s)

D D M M Y Y Y Y

•• You must complete this form for registration of your contracts for the purpose of

Tax Ruling number 220-PR/TR/2011/2 (dated 30 October 2011)

Submit this form before 28 November 2011••