Income Tax

Income Tax is levied under the Income Tax Act (Law Number 25/2019). The act was published in the Government Gazette on 17 December 2019 and taxation under the act is set to commence on 1 January 2020. However, remuneration will come within the purview of income effective 1 April 2020. The Business Profit Tax regime imposed under the Business Profit Tax Act would be repealed with the commencement of Income Tax.

Tax residents of Maldives are taxed on their worldwide income, whereas non-residents are taxed on the income derived from Maldives.

Tax Rates

Individuals

Tax bracket ( taxable income per tax year)	Tax rate
Not exceeding MVR 720,000	0%
More than MVR 720,000 but not exceeding MVR 1,200,000	5.5%
More than MVR 1,200,000 but not exceeding MVR 1,800,000	8%
More than MVR 1,800,000 but not exceeding MVR 2,400,000	12%
More than MVR 2,400,000	15%

Employee withholding tax

Tax bracket (Remuneration subject to employee withholding tax per month)	Tax rate
Not exceeding MVR 60,000	0%
More than MVR 60,000 but not exceeding MVR 100,000	5.5%
More than MVR 100,000 but not exceeding MVR 150,000	8%
More than MVR 150,000 but not exceeding MVR 200,000	12%
More than MVR 200,000	15%

Non-resident withholding tax

Type of income received by the non-resident	Tax rate
Income specified in the section 55(a) of the Income Tax Act	10%
Reinsurance premium	3%

Persons other than individuals and banks

Tax bracket ( taxable income per tax year)	Tax rate
Not exceeding MVR 500,000	0%
More than MVR 500,000	15%

Banks

25% of the taxable income per tax year

Income derived, from Maldives, by non-resident international transport operators

2% of the gross amount of income (specified in section 11(r) of the Income Tax Act) in a tax year

Income Tax Return Filing Requirements for the tax year 2020

Industry Codes

• Agriculture, forestry and fishing
• A1 Crop cultivation and related service activities (including agricultural activities)
• A2 Forestry and loggin
• A3 Poultry/animal production and related service activitie
• A4 Fishing
• A5 Aquiculture/mariculture

• Mining and quarrying
• B1 Mining of sand
• B2 Extraction of crude petroleum and natural gas
• B3 Mining of metal ores
• B4 Other mining and quarrying
• B5 Mining support service activities

• Manufacturing
• C1 Manufacture of fish products
• C2 Manufacture of agricultural products
• C3 Manufacture of other food products
• C4 Manufacture of beverages
• C5 Manufacture of textiles
• C6 Manufacture of tobacco products
• C7 Manufacture of wearing apparels
• C8 Manufacture of leather and related products
• C9 Manufacture of wood and products of wood and cork, except furniture
• C10 Manufacture of paper and paper products
• C11 Manufacture of coke and refined petroleum products
• C12 Manufacture of chemicals and chemical products
• C13 Printing and reproduction of recorded media
• C14 Manufacture of basic pharmaceutical products and pharmaceutical preparations
• C15 Manufacture of rubber and plastics products
• C16 Manufacture of other non-metallic mineral products
• C17 Manufacture of basic metals
• C18 Manufacture of fabricated metal products, except machinery and equipment
• C19 Manufacture of computer, electronic and optical products
• C20 Manufacture of electrical equipment
• C21 Manufacture of machinery and equipment n.e.c.
• C22 Manufacture of motor vehicles, trailers and semi-trailers (including boat building)
• C23 Manufacture of other transport equipment
• C24 Manufacture of furniture
• C25 Manufacture of handicrafts and souvenirs
• C26 Repair and installation of machinery and equipment
• C27 Other manufacturing

• Electricity, gas, steam and air-conditioning supply
• D1 Electricity, gas, steam and air-conditioning supply

• Water supply, sewerage, waste management and remediation activities
• E1 Water collection, desalination, treatment and supply
• E2 Sewerage
• E3 Waste collection, treatment and disposal activities; materials recovery
• E4 Remediation activities and other waste management services

• Construction
• F1 Construction of buildings
• F2 Civil engineering
• F3 Specialized construction activities

• Wholesale and retail trade; repair of motor vehicles and motor cycles
• G1 Wholesale and retail trade and repair of motor vehicles and motorcycles
• G2 Wholesale trade, except of motor vehicles and motorcycles
• G3 Retail trade, except of motor vehicles and motor cycles
• G4 Wholesale and retail trade of food and related products
• G5 Wholesale and retail trade of electric and electronic products
• G6 Wholesale and retail trade of clothing and foot wear
• G7 Wholesale and retail trade of construction materials
• G8 Wholesale and retail trade of souvenirs and related products

• Transportation and storage
• H1 Land transport services and transport via pipelines
• H2 Sea transport services
• H3 Air transport services
• H4 Warehousing and support activities for transportation
• H5 Postal and courier activities

• Accommodation and food service activities
• I1 Guest house (for locals only)
• I2 Food and beverage service activities
• I3 Other accommodation

• Information and communication
• J1 Publishing activities
• J2 Motion picture, video and television programme production, sound recording and music publishing activities
• J3 Programming and broadcasting activities
• J4 Telecommunications
• J5 Computer programming, consultancy and related activities
• J6 Information service activities

• Financial and insurance activities
• K1 Banking and financial service activities, except insurance and pension funding
• K2 Insurance, reinsurance and pension funding, except compulsory social security
• K3 Activities auxiliary to financial service and insurance activities

• Real estate activities
• L1 Real estate activities

• Professional, scientific and technical activities
• M1 Legal and accounting activities
• M2 Activities of head offices; management consultancy activities
• M3 Architecture and engineering activities; technical testing and analysis
• M4 Scientific research and development
• M5 Advertising and market research
• M6 Other professional, scientific and technical activities
• M7 Veterinary services

• Administrative and support service activities
• N1 Rental and leasing activities
• N2 Employment activities; employment agencies, recruitment services
• N3 Reservation service and related activities
• N4 Security and investigation activities
• N5 Services to building and landscape activities
• N6 Office administrative, office support and other business support activities

• Public administration and defence; compulsory social security
• O1 Public administration and defence; compulsory social security

• Education
• P1 University, colleges
• P2 Public and private schools
• P3 Pre-primary and primary education
• P4 Secondary education
• P5 Higher education
• P6 Computer training institutions
• P7 General tuition classes
• P8 Tuition services
• P9 Quran classes
• P10 Vocational and technical educational institutes
• P11 Sports and recreation education
• P12 Other education
• P13 Educational support activities

• Human health and social work activities
• Q1 Hospitals and other health activities
• Q2 Residential care services
• Q3 Social work activities without accommodation

• Arts, entertainment and recreation
• R1 Creative, arts and entertainment activities
• R2 Libraries, archives, museums and other cultural activities
• R3 Sports activities and amusement and recreation activities

• Other service activities
• S1 Activities of membership organizations
• S2 Repair of computers and personal and household goods
• S3 Other personal service activities

• Activities of households
• T1 Activities of households as employers; undifferentiated goods and services-producing activities of households for own use

• Extraterritorial organizations and bodies
• U1 Activities of extraterritorial organizations and bodies

• Tourism sector
• V1 Tourist resort
• V2 Tourist hotel
• V3 Tourist guest house
• V4 Tourist vessel
• V5 Picnic island
• V6 Yacht marina
• V7 Diving school located on an establishment in V1 to V6
• V8 Shop located on an establishment in V1 to V6
• V9 Spa located on an establishment in V1 to V6
• V10 Water sports facility located on an establishment in V1 to V6
• V11 Other facility located on an establishment in V1 to V6 (other than staff shop)
• V12 Tour operator and travel agency service provider
• V13 Foreign tourist vessels’ agent
• V14 Domestic air transport provider