Dhiraagu Urges Shareholders to Update Tax Residency Status

Dhiraagu has urged its shareholders to review and update their tax residency status to ensure dividends are processed correctly under applicable tax requirements.

Under the Income Tax Act (Law No. 25/2019), dividends paid to shareholders who are not tax residents of the Maldives are subject to a 10% non-resident withholding tax under Section 55(a)(4) of the Act.

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The company said tax must also be deducted where it cannot determine that a shareholder is a tax resident of the Maldives at the time a dividend is paid, in accordance with Section 55(c)(1).

Dhiraagu advised shareholders to update their status by logging into the Maldives Securities Depository portal or by completing the Shareholder Information Form and emailing it to the company’s investor relations team.

The company said keeping tax residency information up to date will help ensure the correct tax treatment is applied to dividend payments.