Dhiraagu Asks Shareholders to Update Tax Residency Status Ahead of Dividend Payout
Dhiraagu has requested shareholders update their tax residency status before its interim dividend payout, warning non-residents face a 10 percent withholding tax.
By Rishwan Share
Dhivehi Raajjeyge Gulhun Plc (Dhiraagu) has requested all shareholders review and update their tax residency status ahead of its previously announced interim dividend for the 2026 financial year.
In a notice issued Tuesday, the company said the interim dividend, first announced on 23 July, will be payable to all shareholders on the company's share register as of 4:00 pm on 6 August, the designated Book Closure Date.
Under the Income Tax Act (Law No. 25/2019), which took effect on 1 January 2020, dividends paid to shareholders who are not tax residents of the Maldives are subject to a 10 percent Non-Resident Withholding Tax, in accordance with Section 55(a)(4) of the Act. The law also requires companies to deduct the applicable withholding tax from any dividend payment where a shareholder's tax residency status cannot be confirmed at the time of payment, under Section 55(c)(1).
