Employment Related Taxes in Maldives
Employee Withholding Tax
Employee withholding tax is a system where employers deduct income tax from their employees' remuneration and remit them to the Maldives Inland Revenue Authority (MIRA) on a monthly basis on behalf of the employees.
Remuneration is defined in the Income Tax Act (ITA) to include salary, wages, allowances, and benefits derived by an employee or director or partner as consideration for services rendered by the employee or director or partner and includes any compensation for loss of employment or service, restrictive covenant payment, and an entry or exit inducement payment.
Tax Brackets ( per month)
Not exceeding MVR 60,000
More than MVR 60,000 but not exceeding MVR 100,000
More than MVR 100,000 but not exceeding MVR 150,000
More than MVR 150,000 but not exceeding MVR 200,000
More than MVR 200,000
Tax Rate
0%
5.5%
8%
12%
15%
Registration is mandatory for employees whose average Remuneration Subject to Withholding Tax (RSWT) per month is MVR 30,000 or more, provided at least one employee meets either of the following conditions:
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The average monthly RSWT to be paid to the employee during any 12-month period is estimated to be MVR 60,000 or more.
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The amount of monthly RSWT paid to an employee is MVR 60,000 or more for two consecutive months.
Non- Resident Withholding Tax
Non-resident withholding taxes (NWT) in the Maldives are levied on specific income earned by non-residents in the Maldives as per the ITA (Income Tax Act). NWT is withheld by the payer from the gross amount of the payment at the time of payment and remitted to the MIRA on behalf of the non-resident.
Type of Income subject to 10% NWT as per ITA
Rent in relation to immovable property situated in the Maldives
Royalty
Interest (other than interest paid or payable to a bank or non-banking financial institution approved by MIRA)
Dividends
Fees for technical service
Commission paid in respect of services provided in the Maldives
Payment made in respect of performances in the Maldives by public entertainers
Payment made for carrying out Research and Development in Maldives
Insurance premium paid to a non-resident insurer
Type of Income subject to 5% NWT as per ITA
Payment made to a non-resident contractor