Revision of Maldivian Seafarers’ Tax Regulations

Greetings from seaman community Maldives

For the kind attention of Honorable Minister of Transport and Civil Aviation, the Govt of. the Maldives and the Commissioner-General of MIRA:

Respected Sir/Madam,

Please support Seafarers from the Maldives:

1. To be exempted from taxation of their earnings, even though their stay abroad is short, on foreign going ships.

2. The existing rules applicable to a Maldivian seaman who serves on a foreign going ship are indirectly focused on entries into a seaman book that require 183 days to be considered for an NR or tax exemption in any tax year. Passport entries are said to be meaningless even though the seafarer is short on board for some time abroad.

3. It looks quite unfair if a seaman is taxed in the Maldives even if he served for six months onboard a foreign going ship owned by a local company. Seafarers have daunting and inaccessible jobs at present, which is why seafarers are prepared to extend their SEA and comply literally with the 183-day Income Tax Act.

4. The objective of this request is to obtain an exemption from the tax on salary income of seafarers during service to foreign going ships, though their service period may be limited during the Tax year.

5. Maldivian seamen will tremendously be helped to save their incomes by serving on domestic fleet ships and jobs overseas.

6. It must be recalled that seafarers' jobs are usually contract-based, do not benefit from retirement compensation while on foreign-owned ships, and do not allow them to earn on their own while serving on ships.

7. We urge the Minister of Transport & Commissioner-General of MIRA, for good favor, irrespective of the number of days of service during a Tax year, to exclude a Maldivian seafarer from taxing their earnings.

Note to Maldives seamen: Please inform your flag administration and call for action!

References-

https://www.mira.gov.mv/TaxLegislation/consolidated-income-tax-regulation-english-20200720.pdf

https://www.mira.gov.mv/TaxLegislation/income-tax-act-english-20200722.pdf

Income Tax Guide 2020 for Indian Seafarer (Merchant Navy): https://bit.ly/2S8SEfb https://www.taxadda.com/income-tax-guide-indian-seafarer/#:~:text=The%20salary%20received%20by%20a,No%20special%20exemption%20is%20available.&text=The%20salary%20of%20a%20non,taxable%20income%20of%20the%20seafarer

Malaysia: https://www.pwc.com/gx/en/services/people-organisation/publications/assets/pwc-malaysia-irb-releases-ruling-on-employment-income-aboard-a-ship.pdf

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