The State collected USD 175.10 million in income tax during the first five months of the year, a 28.5 per cent increase from the USD 136.19 million accumulated during the same period last year, according to statistics published by the Maldives Inland Revenue Authority.
Receipts from corporate and non-individual entities served as the primary driver of this revenue, yielding USD 84.31 million over the five-month period, an 8.3 per cent increase over the USD 77.82 million collected from the sector during the corresponding months last year. Taxes levied on non-residents and temporary residents brought in USD 47.67 million, a 40 per cent rise from the USD 33.92 million collected previously.
A sharp acceleration within the financial sector saw income tax collected from banks reach USD 31.78 million, marking a 208 per cent increase from the USD 10.31 million recorded during the same five-month stretch the prior year. Individual taxpayers also contributed to the broader expansion, providing USD 13.88 million in individual income taxes, an 11.8 per cent increase compared to the USD 12.97 million collected last year.
The collections are governed under the national Income Tax Act, officially implemented on 1 January 2020. Taxation of remuneration and wage income commenced on 1 April 2020. Under this framework, permanent residents pay taxes on domestic and international income, whereas non-residents and temporary residents are obligated to pay exclusively on income generated within the Maldives.