Ooredoo Maldives has requested all its shareholders to update their residency status as all future dividend payments are subject to the requirements of the Income Tax Act.
Pursuant to the Income Tax Act (Act No.: 25/2019), companies are required to deduct 10% Withholding Tax from any dividends paid to “Non-Resident” shareholders. Additionally, the Income Tax Act states that, during the time of dividend payment, if a company is unable to determine whether the shareholder receiving the dividend is a resident in the Maldives, it shall be deemed that the shareholder is not a resident in the Maldives, and thus Non-Resident Withholding Tax of 10% shall be deducted from the dividend payment made to such shareholders.
Shareholders can update their residency status online or by submitting a completed “Residency Status Update Form”: -
- Online: Sign into the shareholder’s infinity account with the Maldives Securities Depository Company Pvt Ltd (“MSD”). Log in to https://infinity.mv/ > click “Profile” > click “Contact Information” and update the residency status
- Physical Form: Fill out the “Residency Status Update Form” and email to firstname.lastname@example.org
Further to the requirements of the Income Tax Act, dividends paid to shareholders will be subject to deduction of Non-Resident Withholding Tax of 10% in the event that a shareholder has not declared his/her residency status. Ooredoo Maldives will therefore be making all future dividend payments in accordance with the provisions of the Income Tax Act. Non-Resident Withholding Tax of 10% deducted from dividend payments to Non-Resident shareholders will be paid to the Maldives Inland Revenue Authority (MIRA), as required by the Income Tax Act. Ooredoo requests shareholders’ support in this matter by updating their residency status.
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