Tax laws Maldives
The Maldives operates a comprehensive taxation system administered by the Maldives Inland Revenue Authority (MIRA). Established on August 2, 2010, MIRA is responsible for enforcing tax laws, implementing tax policies, and providing technical advice to the government.
1. Income Tax Act (Law Number 25/2019):
Commencement: The Income Tax Act came into effect on January 1, 2020, repealing the previous Business Profit Tax Act and Bank Profit Tax Act.
Tax Residency:
- Residents: Individuals residing in the Maldives are taxed on their worldwide income.
- Non-Residents: Taxed only on income derived from the Maldives.
Individual Tax Rates:
- Up to MVR 720,000: 0%
- MVR 720,001 to MVR 1,200,000: 5.5%
- MVR 1,200,001 to MVR 1,800,000: 8%
- MVR 1,800,001 to MVR 2,400,000: 12%
- Above MVR 2,400,000: 15%
Corporate Tax Rates:
- Up to MVR 500,000: 0%
- Above MVR 500,000: 15%
- Note: Banks are exempt from this tax and are instead subject to a 25% Bank Profit Tax.
2. Goods and Services Tax (GST):
- General Rate: GST is applied at a rate of 8% to most goods and services.
- Tourism Sector Rate: A higher GST rate of 16% is imposed on goods and services related to tourism.
3. Green Tax:
- Purpose: Aimed at promoting environmental sustainability in the tourism sector.
- Rates:
- Tourist Resorts, Hotels, and Vessels: USD 6 per day.
- Guesthouses on Local Islands with Less Than 50 Rooms: USD 3 per day.
- Maldivian citizens and resident permit holders are exempt from this tax.
4. Departure Tax:
- Implementation: Effective from December 1, 2024, a departure tax is levied on non-Maldivian visitors departing the country.
- Rates: Varies based on travel class; for example, economy class passengers pay approximately £41, while private jet travelers are charged around £396.
5. Airport Service and Development Fees:
- Airport Service Charge (ASC): USD 25 for foreign passengers and USD 12 for Maldivian passengers departing from Maldivian airports.
- Airport Development Fee (ADF): An additional fee of USD 25 for foreign passengers and USD 12 for Maldivian passengers departing from Velana International Airport, introduced on May 1, 2017.
6. Recent Developments:
- Tourist Taxes: The Maldives has introduced various taxes targeting the tourism sector, including the Green Tax and increased GST rates, to fund environmental and infrastructure projects.
Note: Tax laws and regulations are subject to change. For the most current information, it is advisable to consult official sources such as the Maldives Inland Revenue Authority or seek professional tax advice.
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