Hotel, Tourism & Guesthouse
The Maldivian tourism industry is a vital pillar of the country's economy, contributing significantly to its GDP. With its pristine white sandy beaches, crystal-clear turquoise waters, and abundant marine life, the Maldives has become a globally renowned tropical paradise and a sought-after tourist destination.
The Maldives is an archipelago consisting of 26 atolls, each composed of numerous islands. These islands offer a range of luxurious resorts, boutique hotels, and guesthouses that cater to different budgets and preferences. The tourism industry in the Maldives is primarily focused on luxury travel, attracting honeymooners, beach lovers, and diving enthusiasts from around the world.
Key Considerations For Businesses Operating In Maldivian Tourism Industry
Transfer Pricing: For resort chains with international operations, ensuring compliance with transfer pricing regulations when transactions occur between affiliated entities can be complex. Proper documentation and adherence to arm's length principles are important to avoid tax-related disputes.
Tax Incentives and Exemptions: The government may offer tax incentives and exemptions to attract investments and promote sustainable practices in the tourism sector. Understanding and utilizing these incentives effectively require careful planning and collaboration with tax advisors.
