President Dr Mohamed Muizzu has ratified the fourth amendment to the country's Tax Administration Act, strengthening the powers of the Maldives Inland Revenue Authority (MIRA).
The amendment was signed at a special ceremony at the President's Office, after being passed by the Parliament on 26 August.
It introduces changes to tax audits, investigations and the recovery of outstanding taxes, while giving MIRA broader powers to obtain information needed to enforce tax laws.
Under the amended legislation, the Commissioner General of Taxation can require any party holding information relevant to tax enforcement to provide it to MIRA.
The law also introduces additional tax offences and penalties and specifies the information and factors MIRA must consider when determining a taxpayer's liability.
It sets out new requirements and deadlines for filing tax returns and allows taxpayers to settle certain penalties through instalment arrangements under prescribed rules.
The amendment also strengthens provisions covering joint tax examinations with foreign tax authorities, Country-by-Country Reporting and the Common Reporting Standard (CRS).
Those who fail to comply with CRS obligations can now face fines of up to USD 16,200.
The legislation also establishes a code of conduct for members of the Tax Appeal Tribunal and requires their financial statements to be published in accordance with guidelines set by the Auditor General.
It further sets limitation periods for bringing civil and criminal proceedings under the Tax Administration Act.
The amended law took effect on Monday following its ratification by President Muizzu and publication in the Government Gazette.