Summary of new taxation rules for resorts

A summary of Second Amendment Bill to the Tourism Act and Tourism Goods and Services Tax Bill is as follows:

if the land area is < than 200,000m2 AND
if the rent is > than US$1 million, then the rent = US$1m/y

if the land area is < than 200,000m2 AND
if the rent is < than US$1 million then, the rent is= US$8/sqm

if the land area = 200,001 to 400,000m2 then, US$1.5m/y

if the land area> 400,001m2 AND
if the rent >US$2 million then, rent = US$2m/y

  • When this bill is enacted prior rates will be scrapped and all resorts will have to calculate rent based on this law.
  • Will start on the same day as taxation bill comes to effect
  • if the resort is registered in Maldives and is 55% shares are owned by the public, then that resort’s lease shall be extended to 99 years.

Its important to note that the new rules does not address the issue of “stolen” resorts, which are tourist islands the tourism ministry does not know about such as the Kandholhu Island Resort owned and run by the Universal Group.

Kandholhu Island Resort?

Relevant links:
http://www.haveeru.com.mv/?page=details&cat=&tbl=online&id=100077
Haama daily
at Minivan News

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2 thoughts on “Summary of new taxation rules for resorts

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  2. Dear all,

    We are a young couple from Germany who have just come back from a 11 day stay on Ziyaaraifushi – nowadays called “Summer Island” (which I find stupid – as I, in a way, feel that anybody not being able to remember the name doesn’t really have the right to stay somewhere as beautiful, though that may sound a bit harsh.)
    It has been our first visit to the Maledives. We ended up there quite on chance – really needing to have a few days off of anything we do here in Germany, not having a big budget, just wanting to be somewhere beautiful, far away from our daily lives – we would have never thought that there could be a possibility to get even somewhere close to the Maledives, but when we saw this last minute offer, and compared it to other possibilites in Greece, Italy or somewhere else in Europe, we just couldn’t say no. You may call it naive – going to a country without knowing anything really about it – but this is how it was, anyway.

    Let me tell you that we had one of the most happiest, most beautiful times of our lives. When I look at the photos that we took of our stay – we took a lot of them, and I still look at them every day – the memory overwhelmes me. Also, when I look at my own face on these photos, I have to think that I look somewhere near sad – you know the way when things are on the verge of being simply too beautiful they nearly make you cry? I felt a lot like nearly crying because of all the beauty surrounding me.

    Let me also say that I know: the “nature” that so striked me is nothing near “nature” per se – but the product of uncountable people who garden it, care and take care of every leave on the ground and stone on the beach. So I know that it is, in a way, an artificial paradise: a picture of a paradise, a paradise in such a way that people like us think of a paradise.

    Let me also say that we are so thankful for the way these uncountable people who worked there for us did all the things for us. Some of them have faces for me, some even names. Many of them, however, I have never had the chance to meet, or say thank you to, or tip, or whatever more or less stupid or helpless gesture I could have thought to give them. I know I could never give anything back the way I should.
    The food has been marvellous,the service more than great. Especially knowing that the time of Rhamazan is a special, difficult time for people having to work so hard without food or even water (especially for people who eat and drink all the time and who load their plates with so much food they don’t even have half the chance to eat it all up): people were so, so friendly.

    You know, the way the role of being a tourist influences your view a lot. So the whole first week I ran around the island nothing else than being happy. It’s strange. Only after this first week I started to ask myself questions. They may sound very naive to you. I’m sorry for that. Please do not get angry at my naivety. I pose them anyway. I started asking myself things like: Where are all the staff workers at night? Are they all in this tiny place inside of the island, this place behind the walls? Where are those that are free (sure they have to have free days??) when they are free? Can they go the beach? Can they NOT go the beach? Oh, they can NOT go the beach? Is this whole paradise thing only for us, the tourists? SHIT! How can I possibly enjoy what I am enjoying so much when I can only enjoy it because I’m a stupid tourist? What about the people whose country this is??? Or the people who come here because they need work and money to support their families back home? And what about the working conditions, anyway? How are the staff accomodated? Do they have air condition at all? How many are there in one room? How much are they paid? Do they really get the money I put in the tip boxes? Where do they all come from? How do they get there? Do they know about the working conditions before they sign? Do they have working contracts? Do they get paid the flights there and back home? Or do they have to pay them themselves? How can they? What about when they are kicked out? Do they have holidays? Free time? Is there something like a worker’s law in the Maldives, and what does it cover? Do they have the possibility to ask things or change things or are they fired whenever they say something against anyone? What rights do they have?

    And most of all: CAN I POSSIBLY COME BACK?? Now that I kind of woke up to all these questions ( and, yes, I know, I know: how stupid to not have asked them in advance! You know, I have not travelled for a long time. So I kind of really came here naked.) Now that I kind of woke up to all these questions, I don’t think I could possibly come back without some kind of answers. Answers that don’t make me a stupid, uncaring, immoral tourist girl.

    I don’t know if you can help me. I will try to find any information that I can.
    I want you to know that these holidays made me so happy. They also got me so worried and sad. These both things stand next to each other, in a very, very confusing way.
    I wanted to tell you how I felt. I want to tell you that I want to respect you and have a feeling that I didn’t do say – simply because of coming there. Living in this paradise when the people who made it a paradise for me don’t live in a anything near a condition that could be called that.

    Thank you for listening. I would be glad for any reply.

    Thank you.

    emma.

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