President Dr Mohamed Muizzu has ratified an amendment to the Income Tax Act that doubles the withholding tax on payments to non-resident contractors working on construction projects in the Maldives.
The amendment raises the withholding tax from 5 percent to 10 percent and establishes the amount as the full and final tax liability for non-resident contractors.
The Bill was passed by the Parliament at its 27th sitting of the second session on 23 August 2026. President Muizzu ratified it at a ceremony at the President’s Office.
The government says the change is intended to create fairer and more competitive conditions between Maldivian businesses and foreign contractors involved in construction projects.
The amendment also provides a clearer definition of a “non-resident contractor” under the Income Tax Act.
Authorities say the revised definition will simplify the administrative process for non-resident contractors when filing their tax returns.
The amendment has been published in the Government Gazette and has come into effect.