Maldives begins collecting income tax from public wages

The Maldives has begun collecting income taxes from the wages/salaries of the public.

The Income Tax Act was ratified into the law by the president in December 2019. The country began collecting taxes from individuals’ earnings (other than wages and salaries) in January.

Today, the country began collecting taxes from the wages/salaries of the public. The tax brackets for the collection of taxes are as follows.

• 0 - MVR 60,000
• MVR 60,000 – MVR 100,000: 5.5 percent
• MVR 100,000 – MVR 150,000: 8 percent
• MVR 150,000 – MVR 200,000: 12 percent
• MVR 200,000 and above: 15 percent

Maldives Inland Revenue Authority (MIRA) also announced the deadline for income tax payments today.

The deadline for income taxes is the 15th of every month. The first month’s deadline will lapse on May 15th.

Deadlines for Interim Returns and Income Tax Returns were also announced.

• First Interim Return and Payment: July 31, 2020
• Second Interim Return and Payment: January 31, 2021
• Last Interim Return and Payment: June 30, 2021

Income tax is a pledge made by the current government before it came to power and is designated as a source of income in the state budget for 2020.