The Maldives Ministry of Finance has granted tax exemptions to five Indian companies operating in the country. The move comes as part of the agreement with the Exim Bank of India to allocate funds for their respective projects.
Among the companies that have been granted exemption are L&T Infrastructure Engineering Limited and Lia Associates South Asia Primate Limited JV, which provide consultancy for the Addu City Development Project. The companies have been exempted from the Income Tax Act between May 26, 2021, and December 31, 2025.
Afcons, which is responsible for the construction of the Thilamale' Bridge and Addu road project, has also been granted exemption from the Income Tax Act. The appeal was filed between May 26, 2021, and December 31, 2024, over the construction of the Addu road.
In addition, Vishwaraju Environment Private Limited, which provides sanitation services in six villages, has been granted exemption from the Income Tax Act from July 27, 2021, to March 31, 2025.
JMC Projects has also been granted exemption for its work in water and sanitation in 10 islands, as well as for the Hanimaadhoo airport project.
These companies have been granted exemption as they are required to waive taxes on their projects, as per the agreement with Exim Bank of India. The Income Tax Act was amended on July 20, 2021, to exempt companies undertaking certain projects from tax. Under the amendment, companies carrying out specific projects for a specified period of time, as determined by the President, will be exempt from the implementation of the Act.