Maldives has begun collecting income tax on salary and wages.
Income Tax is levied in Maldives under the Income Tax Act. The act was published in the government gazette on December 17, 2019 and taxation under the act is set to commence on January 1. Income tax on salary and wages will be collected from individuals who earn more than USD 3,893.58 per month.
On December 17, President Ibrahim Mohamed Solih ratified the bill into law passed by the parliament on December 4, 2019. Income Tax is levied on personal income and profit earned from businesses covering income received from entities in the Maldives by local and foreign individuals and companies. The tax rates would remain unchanged for banks at 25% on profits, while taxes of 15% on profits that exceed USD 32,349 would be levied on corporations, partnerships and other business entities.