The Government of Maldives has submitted the Bill on Income Tax to the Parliament of Maldives.
The bill requires those receiving a monthly income of more than USD 2,596 to pay Income Tax. Individuals earning between USD 2,595 and USD 3,895 will pay 8% of their income as tax, while individuals earning between USD 3,895 and USD 6,490 will pay 10% of their income as tax. The bill further requires individuals who earn over USD 6,490 to pay a tax of 15%.
Ministry of Finance estimates that about 2,600 individuals, from the total of 6,000 individuals subjected to the tax, earn an income of USD 2,595 and USD 3,895 and about 2,200 individuals earn between USD 3,895 and USD 6,490. Only about 1,000 individuals earn a monthly income of over USD 6,490.
The finance ministry explained 5 key areas were considered during the development of an Income Tax system. The system was designed to ensure fairness, impartiality, ease of management, cost-efficiency and a standard enforcement.
Income Tax shall be collected from residents of Maldives on income earned in Maldives and elsewhere. Individuals living in Maldives who are not residents will be charged Income Tax only based on the income earned in Maldives.