Taxes in Maldives

The Maldives tax year runs from 1 January to 31 December. Income Tax applies to remuneration, business income, rent, dividends, interest, pensions, technical fees, commissions, royalties, disposals and capital gains, as well as other taxable income. Authorised income-producing expenses and certain loss relief may be deducted. A resident individual generally has a permanent home in the Maldives or spends at least 183 days there during a 12-month period. A resident company is generally incorporated in the Maldives or has its head office, control and management there. Residents are generally taxed on worldwide income, while non-residents and temporary residents are generally taxed on Maldives-source income. A temporary resident is a foreigner with immigration permission who is not married to a Maldivian citizen. For individuals, annual Income Tax is calculated progressively: income up to MVR 720,000 is taxed at 0%; the portions above MVR 720,000 up to MVR 1,200,000 at 5.5%; above MVR 1,200,000 up to MVR 1,800,000 at 8%; above MVR 1,800,000 up to MVR 2,400,000 at 12%; and income above MVR 2,400,000 at 15%. Monthly Employee Withholding Tax (EWT) uses corresponding thresholds of MVR 60,000, MVR 100,000, MVR 150,000 and MVR 200,000. Contributions to the Maldives Retirement Pension Scheme and Zakat al-Mal paid to the responsible government institution may be deductible. A person whose only income comes from one payer may, in some cases, not need to file an annual return; other individuals generally use MIRA Form 604. Companies, partnerships, trusts and other entities generally pay 0% on taxable profit up to MVR 500,000 and 15% on the excess. The threshold is divided between entities in the same group. Commercial banks are taxed at 25%. Partnerships and trusts are separate taxable entities for this purpose. Business expenses must be wholly and exclusively incurred to produce income. Business and capital losses may generally be carried forward for up to five years. Special project or industry exemptions and Special Economic Zone incentives apply only where a Gazette notice or Investment Agreement provides them. Business Profit Tax and Bank Profit Tax have been replaced by the current Income Tax framework. GST is generally 8%, while the tourism sector rate is 17% from 1 July 2025. Tourism GST covers supplies by tourist establishments, diving, spa and watersports services at tourist establishments, travel agencies, agents for foreign vessels and domestic air transport for non-Maldivian citizens. GST registration is mandatory for tourism supplies, non-personal imports and taxable sales that exceeded or are expected to exceed MVR 1,000,000 in a 12-month period. A taxable period is monthly when average sales exceed MVR 1,000,000 per month and otherwise generally quarterly. GST returns and payments are due by the 28th of the following month, including nil returns. Displayed prices should include GST. A listed 2026 amendment provides a 17% rate from 1 October 2026 for inbound tourism products and agency or booking services supplied by a non-resident without a fixed place of business; input-tax offset is not available for that category, and registration is required within 30 days or before a non-personal import, whichever applies. Income Tax registration is made through MIRA Form 117, generally within 30 days after the first Maldives income or the relevant permit. Changes to registered information generally must be reported within 15 days. A business registration with the Ministry of Economic Development may trigger MIRA registration or a Taxpayer Identification Number. MIRAconnect supports online filing and payment. Income Tax interim returns and payments are generally due on 31 July and 31 January, with interim obligations regularly arising where liability exceeds MVR 20,000. Final returns and payments are generally due on 30 June of the following year. EWT and Non-resident Withholding Tax (NWT) returns and payments are generally due by the 15th of the following month. A withholding payer deducts and remits the tax. NWT commonly applies at 10% to rent, royalties, interest other than approved bank or non-bank financial institution interest, dividends, technical fees, commissions, public entertainers, research and development and insurance. In many cases NWT is a final tax. The research record also provides a 10% gross withholding rule for non-resident contractors from November 2026, covering goods or services. Green Tax is paid by tourists. From 1 January 2025, the rate is USD 12 per day at resorts, integrated resorts, resort hotels, uninhabited-island establishments and hotels or guesthouses with more than 50 rooms, including tourist vessels and other covered establishments. The rate is USD 6 per day at inhabited-island hotels or guesthouses with up to 50 rooms. Children under two are exempt. The holder of the operating licence is generally registered automatically, while a foreign tourist vessel uses a local agent. Green Tax returns and payments are due by the 28th of the following month in USD. Departure Tax applies to departures from any Maldivian airport. The Airport Development Fee applies to departures through Velana International Airport; from 1 December 2024, the fee is USD 12 for Maldivian economy passengers, USD 50 for foreign economy passengers, USD 120 for business class, USD 240 for first class and USD 480 for private jets. The airline or airport operator collects the fee. The relevant collection return and payment are due by the 28th of the following month. A Plastic Bag Fee of MVR 2 per bag applies from 18 April 2023. A GST-registered business declares and pays it through the GST return, subject to exclusions for duty-free bags, bags for fresh unpackaged fish and bin liners. Maldives Customs Service administers Import Duty under the Export-Import Act. The amount depends on the goods and their HS classification, so the applicable tariff must be checked for the specific product. The former remittance tax under the Employment Act is not a current general remittance tax and should not be treated as one. Cross-border activity can create a Maldives Permanent Establishment (PE). The research thresholds include building or construction activity lasting more than 90 days, services lasting more than 183 days in a 12-month period and resource or equipment activity lasting more than 90 days. A dependent agent can also create a PE. A limited force-of-attraction rule can extend taxation to similar goods or services. A PE normally keeps accounts for its Maldives activities under IFRS, IFRS for SMEs or AAOIFI; cash-basis treatment may be available where annual income does not exceed MVR 10 million. International transport income is taxed at 2% of gross income. Maldives has tax arrangements in force with the United Arab Emirates, Bangladesh and SAARC countries. Malaysia is stated to become effective on 1 January 2027, while the Hong Kong agreement is not yet effective. India has an air-transport agreement rather than a general double-tax treaty. Treaty relief depends on the treaty, beneficial ownership and residence requirements. The arm's-length principle applies to related-party pricing. Transfer-pricing documentation can include a Master File, Local File and Country-by-Country Report (CbCR), and an Advance Pricing Agreement (APA) is available. Mutual Agreement Procedure (MAP) can address transfer pricing, double taxation, residence and PE profit attribution. The Maldives exchanges information through Exchange of Information on Request, spontaneous exchange and the Common Reporting Standard (CRS). CbCR applies to groups above EUR 750 million and is filed no later than 12 months after the fiscal year. CRS reporting distinguishes pre-existing accounts at 31 December 2020 from new accounts opened from 1 January 2021. Businesses and individuals must retain records, cooperate with audits and meet filing and payment deadlines. An objection is generally filed within 30 days. MIRA generally has up to 120 days to decide, after which an appeal to the Tax Appeal Tribunal is generally available within 60 days; an assessment appeal requires payment of at least 25% of the disputed tax. Late payment can incur 0.05% per day. Civil filing or incorrect-information penalties can include 0.5% and daily amounts capped at MVR 50 or MVR 100 depending on the offence.