This provides an overview of the key taxes that foreign businesses will have to pay while conducting operations in the Maldives. In addition to these major taxes, foreign businesses may also be subject to various other taxes and fees, which are akin to those applicable to local businesses.
| Taxes and Fees | Relevant Legislation | Particulars |
| Income Tax | Income Tax Act | The tax system in the Maldives follows a residency-based approach. Tax residents, whether individuals or entities, are liable for taxation on their global income. On the other hand, non-residents and temporary residents are subject to taxation only on their Maldives-sourced income. Entities such as corporations, partnerships, and other corporate bodies are subjected to a tax rate of 15% on taxable income that surpasses USD 32,452. |
| Goods and Services Tax | Goods and Services Tax Act | This is a consumption-based tax on goods and services. It’s the primary indirect tax in the Maldives and is levied at 16% for the tourism sector and 8% for the general sector. |
| Non-resident Withholding Tax | Income Tax Act | This tax is deducted at the source of payment and is applicable to various types of payments such as dividends, interest, royalties, and technical service fees paid to non-residents. |
| Employee Withholding Tax | Income Tax Act | Employers are required to withhold income tax on employee remuneration that exceeds USD 3,891 per month. |
| Green Tax | Maldives Tourism Act | This is an environmental tax levied on tourists staying in tourist accommodations. It’s aimed at supporting environmental and conservation efforts in the Maldives. |
| Import Duties | Customs Act | Import duties are taxes imposed on goods brought into the country. The rates may vary depending on the type of goods. |
| Land Rent | Maldives Tourism Act and other relevant regulations | This tax is applicable to properties and land leased from the government for commercial or residential purposes. |
Additionally, it would be beneficial to review the Tax Administration Act [https://mira.gov.mv/Legislations/View/tax-admin-act ] and familiarize yourself with the various taxes and fees that pertain to businesses. These resources are accessible on the website of the Maldives Inland Revenue Authority [https://mira.gov.mv/]
You can download the MIRA’s Tax Guide to Foreigners Doing Business in the Maldives here. https://mira.gov.mv/Files/GetFile/1e8dc364-60ec-4a11-a636-6b6c4c264248
