Maldives postpones introduction of new tax for foreign travel companies

The Maldives has postponed the introduction of a 17 percent tourist tax (TGST) for foreign tour operators, travel agencies and overseas booking platforms until April 1, 2027. This was announced on October 3 by the Minister of Tourism and Civil Aviation of the country Mohamed Amin at an event on the occasion of the National Tourism Day, the Russian Union of Travel Industry (RCT) reported.

Initially, the new rules were supposed to come into force on October 1, 2026. They provide for the extension of the current TGST rate of 17% in the Maldives for tourism products, as well as agency services and bookings that foreign companies without a permanent establishment in the country provide to tourists.

The eighth amendment to the Goods and Services Tax Act created the legal basis for the changes. Maldives President Mohamed Muizza ratified it on August 31.

“We assess the decision to delay positively,” said Artur Muradyan, a member of the board of the PCT, general director of the tour operator Space Travel.

On September 24, the Association of Tour Operators of Russia asked the Maldives government to exclude Russian companies from the new tax rules.