11. What are the taxes imposed on companies and income in the Maldives?

Below are the main taxes applicable in the Maldives Jurisdiction:

#Tax TypeApplicable RateNotes
1.Corporate Income Tax15%Calculated on profits exceeding MVR 500,000 (i.e. approx. USD 32,425).
2.Personal Income TaxAs per income subject to published tax bracketsCalculated on personal income exceeding MVR 720,000 (i.e. approx. USD 46,692).
3.Goods and Services Tax/VAT 
General Goods and Services Tax (GGST)
Tourism Goods and Services Tax (TGST)		8%


16%		GGST is charged for all activities that do not fall within the activities conducted under the Operating License of a Tourist Establishment.

TGST is charged for all activities conducted under the Operating License of the Tourist Establishment.
4.Non-Resident Withholding Tax (WHT)As per applicable WHT rateCertain categorically identified payments made to non-resident parties will be subject to withholding tax at 5% or 10%.
5.Employee Withholding Tax (PAYE Tax)As per remuneration subject to published tax bracketsCalculated on remuneration paid to employees exceeding MVR 60,000 (i.e. approx. USD 3,891).
6.Green TaxUSD 3 / USD 6 from each tourist per day of stayGreen Tax is charged from each tourist per each day of stay in tourist resorts, tourist hotels, tourist vessels and tourist guesthouses at the prevailing rate.
7.Capital Gains Tax (CGT)As per applicable income tax rates for corporates and individualsCGT is levied on gains derived from the disposal of movable, immovable, intellectual or intangible property in respect of which capital allowance is not allowed.

The Maldives has a Double Tax Avoidance Agreement (DTA) with the United Arab Emirates (UAE). Hence, if the taxable transactions fall within the scope of the said DTA agreement, the investor will have the benefit of being taxed in one country.

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