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Income Tax increases 27% in 2022 compared to 2021

Maldives Inland Revenue Authority (MIRA) has revealed a 27% increase in Income Tax in the fourth quarter of 2022 compared to the previous year.

The Quarterly Report published by MIRA shows that Income Tax collection stood at USD26.2 million in the fourth quarter of last year which is an increase of 37% compared to the fourth quarter of 2021. MIRA stated that the largest amount of Income Tax revenue was collected from companies and non-private individuals. The government collected USD8.5 million in taxes from companies and non-private individuals last year which is an increase of 71.9% compared to 2021, according to the report.

Additionally, income tax revenue from individuals in the fourth quarter of last year also increased compared to 2021, As such, the government collected USD3.6 million in income tax from individuals last year which is a 40.9% increase compared to 2021. The report also stated that income tax on individuals includes the tax on personal income. The government collected USD3.12 million in personal income tax last year which is an increase of 39.6% compared to 2021.

The Maldives introduced personal income tax on January 1, 2020. Income tax is levied on those earning more than USD3,891 per month.