Deferral of rent payable to the government due to COVID-19 (Unofficial translation by MATI) - MATI

(Unofficial translation)

Ministry of Finance

Malé

Maldives

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Circular on Finance

2020

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No: 13-B3/CIR/2020/34

28th June 2020

                                                                                             07 Zulqaida 1441

Deferral of rent payable to the government due to COVID-19

Due to the ongoing COVID-19 pandemic, the economic crisis which ensued due to the safety measures taken to control the spread of the virus, has caused considerable difficulties to run and operate businesses during this time, resulting in financial losses to both businesses and the citizens. Amid this difficult time, to help the citizens and to help maintain the businesses, the government has been providing financial help along with extra easements for individuals and businesses. Thus, the government has decided to grant an ease on the rent payable to the government on leased lands for the year 2020, as follows,

• Resort Rent: Payment of rent of the resorts in the third and fourth quarter to be deferred until 1st June 2021.
• Other Rent payments: Land Rent payable from June 2020 to December 2020, to be deferred until 1st June 2021.

The aforementioned deferred rent must be paid in installments over a period of 1 (one) year. If the rent is to be paid every 3 (three) months, the deferred payment must be made over the period of 4 (four) quarters (June 2021, September 2021, December 2021, March 2022), starting from 1st June2021 And if the rent is being paid monthly, the deferred payment must be made in installments over a period of 12 (twelve) months.

Furthermore, no fines will be charged for the period for which rent deferral is granted. However, fines and interest for the deferred rent payments will start to accrue only if there is a failure to pay the deferred lease rents for the newly deadlines (1st June 2021).

The rent deferrals stated above, includes rent payable to individual ministries, offices or institutions under those ministries and trust funds (excluding Zakat fund) run by the ministries.

Thus, with regard to the aforementioned rent deferrals, it is advised to make the necessary amendments, if need be, to the lease agreements made between the lessees and the government.

Ibrahim Ameer,

Minister of Finance