Some items are exempt, including electricity service, water facilities, postal service (not including courier services), sewerage facilities, education, health services, medical devices and drugs, financial services, rent earned from the lease of immovable property, international transportation services, payments collected as fines, daycare services; flats, land and buildings sold by the Government or by the Government through a third party under social housing schemes in which the Government has the discretion to control the price of the property being sold.
Expenses eligible for deduction from business income include:
Further deductions are available (subject to conditions) for welfare expenses, interest on loans (up to 6% per year), bad debts included in the corporate’s total income if reasonable steps have been taken to realise the debt; head office expenses (capped at 3% of total income), expenses incurred before the commencement of business.
The loss suffered in a tax year can be carried forward and set off against the taxable income of future years.
|Maldives||South Asia||United States||Germany|
|Number of Payments of Taxes per Year||17.0||26.7||10.6||9.0|
|Time Taken For Administrative Formalities (Hours)||390.5||273.5||175.0||218.0|
|Total Share of Taxes (% of Profit)||30.2||43.9||36.6||48.8|
Source: Doing Business - Latest available data.
|Personal income tax||2023 brackets|
|MVR 0 - 720,000||0|
|MVR 720,000 - 1,200,000||5.5%|
|MVR 1,200,000 - MVR 1,800,000||8%|
|MVR 1,800,000 - MVR 2,400,000||12%|
|Above MVR 2,400,000||15%|
No specific expense in relation to employment is allowed as a deduction from employment income. Zakat payments and contributions to the Maldives Retirement Pension Scheme are deductible.
Life insurance premiums can be deducted if several conditions are respected. Donations to a State institution or a charitable organisation approved by the Commissioner General of Taxation are deductible up to 5% of the taxable income. Interest on loans is also deductible (up to 6% per year).
|New Year's Day||1st January|
|Ramadan (Eid and Hajj)||variable|
|Labor Day||1st May|
|Independence Day||26th July|
|National Day||27th September|
|Prophet Mohamed’s (SAW) Birthday||8th October|
|The Day Maldives Embraced Islam||27th October|
|Victory Day||3rd November|
|Republic Day||11th November|
Any Comment About This Content? Report It to Us.
© eexpand, All Rights Reserved.
Latest Update: September 2023