Verified Facts
The tax rates in Maldives range from 5% to 15% for personal income tax, with a corporate tax rate of 15%, and a VAT/GST rate of 8%, making it a relatively low-tax jurisdiction for individuals and businesses.
Tax laws change frequently. Always consult a qualified tax professional for advice specific to your situation. This is a general guide only.
Quick Facts
Tax System Overview
The Maldives has a territorial taxation system, where only income earned within the country is subject to tax, except for Maldivian citizens and residents who are taxed on their worldwide income. Residency rules for tax purposes are based on the number of days spent in the country, with individuals who spend more than 183 days in a calendar year considered tax residents. The tax system in Maldives is designed to promote economic growth and attract foreign investment, with a relatively simple and straightforward tax regime.
The tax authority in Maldives, the Maldives Inland Revenue Authority (MIRA), is responsible for administering and collecting taxes, as well as providing guidance and support to taxpayers. The tax system is based on a self-assessment regime, where taxpayers are required to file their tax returns and pay their taxes on a timely basis. The tax year in Maldives runs from January to December, and taxpayers are required to file their tax returns by the end of March of the following year.
Personal Income Tax
| Income Bracket (MVR) | Tax Rate |
|---|---|
| 0 - 50,000 | 5% |
| 50,001 - 100,000 | 7% |
| 100,001 - 200,000 | 10% |
| 200,001 - 500,000 | 12% |
| 500,001 and above | 15% |
Personal income tax in Maldives is relatively straightforward, with a few deductions and allowances available, including a personal allowance of MVR 50,000, and deductions for mortgage interest and charitable donations. Taxpayers are required to file their tax returns on a yearly basis, and are subject to penalties and fines for late filing or non-payment of taxes. Tax returns can be filed electronically or manually, and taxpayers can also seek assistance from tax agents or consultants.
Corporate & Business Tax
- The corporate tax rate in Maldives is 15%, which applies to all businesses, including small and medium-sized enterprises (SMEs).
- Small business incentives are available, including a reduced tax rate of 10% for SMEs with an annual turnover of less than MVR 1 million.
- Free zones are available in Maldives, which offer a range of tax and non-tax incentives, including a 0% tax rate for certain types of businesses.
- Registration requirements for businesses in Maldives include registration with the Maldives Inland Revenue Authority (MIRA) and the Ministry of Economic Development.
- Businesses are required to file their tax returns on a yearly basis, and are subject to audits and inspections by the tax authority.
VAT / Sales Tax
- The standard VAT rate in Maldives is 8%, which applies to most goods and services.
- Reduced rates of 0% and 3% apply to certain types of goods and services, including food, healthcare, and education.
- Exemptions are available for certain types of businesses, including financial services and tourist resorts.
- A tourist refund scheme is available, which allows tourists to claim a refund of VAT on certain purchases.
For Expats & Foreign Workers
- Tax residency rules for expats and foreign workers are based on the number of days spent in the country, with individuals who spend more than 183 days in a calendar year considered tax residents.
- Double taxation treaties are in place with several countries, including India, Sri Lanka, and China, which can help to reduce the tax burden on expats and foreign workers.
- Social security contributions are required for all employees, including expats and foreign workers, which provides access to a range of social security benefits.
- Remittance rules allow expats and foreign workers to remit their earnings abroad, subject to certain conditions and requirements.
- Expats and foreign workers are required to register with the tax authority and obtain a tax identification number (TIN) in order to file their tax returns and access tax benefits.
- Expats and foreign workers may be eligible for tax credits and deductions, including a credit for foreign taxes paid and deductions for housing and education expenses.
Crypto & Investment Income
- Investment income, including dividends and interest, is subject to tax in Maldives, with a tax rate of 5% applying to dividend income.
- Cryptocurrency is subject to tax in Maldives, with gains from the sale of cryptocurrency considered capital gains, which are included in income and subject to tax at the applicable tax rate.
- Tax incentives are available for investment in certain types of assets, including real estate and infrastructure projects.
- Income from foreign investments is subject to tax in Maldives, with a credit available for foreign taxes paid.