ATOR urges Maldives to exempt Russian tour operators from new tax

The Association of Tour Operators of Russia (ATOR) sent an appeal to the Minister of Tourism and Aviation of the Maldives Mohamad Amin because of the spread of a 17% tax on the profits of foreign tour operators. ATOR called on the government of the republic to exempt Russian tour operators from paying tax.

Russian companies purchase Maldivian hotel services at a cost that already includes local taxes, and the tour operator’s margin is formed in Russia. To verify it, the Maldivian tax authorities would need access to the financial statements, contracts and settlements of Russian companies in the territory of the Russian Federation, which is impossible, since these processes are regulated exclusively by Russian legislation, the statement said.

Double taxation makes the Maldives less competitive compared to other premium resorts and could lead to a decrease in tourist flow. ATOR also appealed to the head of the Ministry of Economic Development Maxim Reshetnikov and asked to conduct operational consultations with the Maldivian side to convey the position of the industry.

The Maldives passed tax amendments in late August. From October 1, foreign companies that sell or resell tourism services on the islands must register with the local GST tax system.