The Maldives has postponed the 17% tax % on foreign tourist agencies until April 2027.
The Maldives have announced a postponement of the implementation tax on tourist services (TGST) for foreign travel agencies, tour operators and online booking platforms until April 1, 2027. The decision was announced on October 3 by the Minister of Tourism and Civil Aviation Mohamed Ameen, following numerous complaints from international tourism associations.
The new rules were supposed to start being applied on October 1, 2026, and their goal is to expand the existing tax from 17% % to certain tourist products and intermediary services sold by foreign companies without a permanent business establishment in the Maldives.
Why did the new tax provoke opposition from the agencies?
According to the amendments to the tax law, the registration obligation with the Maldivian tax authority MIRA covers foreign providers of tourist services and intermediaries who sell accommodation, transportation, food, and other tourist activities in the Maldives.
It is important to distinguish the existing TGST from the new rules. The 17% rate is % already being applied in Maldives tourism, while the amendments expand the tax coverage to the operations of foreign companies. This does not automatically mean an additional 17% % on the price of each tourist package.
International associations warn that the new system could increase administrative costs, reduce agency margins, and affect competitiveness. Maldives.
The British association ABTA, with the support of other international organizations, has requested additional consultations and clarification of the obligations of agencies that act as intermediaries in the sale of packages.
The postponement has been announced, but legal uncertainty remains
Although the minister announced the start of implementation on April 1, 2027, ABTA requested formal confirmation of the postponement because the law amendments had already come into effect on October 1.
This difference between the political announcement and the official legal implementation creates uncertainty for companies that are already selling packages for the next year.
It is particularly important for tourism agencies in Croatia and the region that sell the Maldives to clarify whether the registration obligation applies to all sales models or primarily to tour operators and companies that directly contract tourist services.
Agencies should therefore verify their contractual relationships with suppliers and follow the official instructions of MIRA before possibly adjusting prices or business processes.
The delay comes ahead of the Visit Maldives 2027 promotional campaign, during which the destination aims to further strengthen its position in the international tourism market. However, for its foreign sales partners, obtaining clear and enforceable tax rules is currently the most important priority.
