BPT - Business Profit Tax

BPT is a tax charged, under the Business profit Tax Act (Act Number 5/2011), on the profits of all businesses carried out in Maldives. The Act was published in the Government Gazette on 18 January 2011 and as per the Act, it will commence after 6 months from this date.

Companies, partnerships, individuals and all persons who are resident or carrying out business in Maldives would be subject to tax under this Act. In addition, certain payments made by any Person to a non-resident would also be subject to tax under this Act. The tax rates are:

Companies, Partnerships and other Persons 15 percent
Profit from sources outside Maldives 5 percent
Withholding tax 10 percent

BPT Fine Calculator

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First Interim Second Interim Final Return
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Fines

First Interim Second Interim Final Return
Payable Amount
Days Late Filing 297 114 0
Days Late Payment 297 114 0
Late Filing Fine
Reference: TR-2013/B26
No Fine No Fine 0.00
Late Payment Fine
Reference: TR-2013/B26
0.00 0.00 0.00
Interest
BPT Act 23(h), 24(c)
0.00 0.00 0.00
Total Fines 0.00 0.00 0.00

Total Payable

First Interim Second Interim Final Return
Amount of Tax 0 0 0
Amount of Fine 0.00 0.00 0.00
Total Amount 0.00 0.00 0.00

Approved Banks and Financial Institutions

Approved banks and financial institutions are those approved by MIRA for the purpose of Section 11(a)(5) of the Business Profit Tax Act. In computing your taxable profit, you may deduct in full the interest you pay to such banks and financial institutions. Interest paid to approved International Financial Institutions (IFIs) are deductible only if the relevant IFI was approved on or before the date of filing your BPT Return for the year.

Banks and financial institutions approved by MIRA are:

  1. Any Bank of financial institution licensed by the central bank of the country of operation of that bank or financial institution

  2. The following IFIs and agencies controlled by such institutions:

  Name Approved Date
1 World Bank 20 March 2012
2 International Monetary Fund (IMF) 20 March 2012
3 Asian Development Bank (ADB) 20 March 2012
4 Islamic Devolopment Bank (IDB) 20 March 2012
5 European Investment Bank (EIB) 20 March 2012
6 European Bank for Reconstruction and Development (EBRD) 20 March 2012
7 Nordic Investment Bank (NIB) 20 March 2012
8 OPEC Fund for International Development (OFID) 20 March 2012
9 Deutsche Investitions- und Entwicklungsgesellschaft (DEG) 20 March 2012
10 Groupe Agence Française de Développement (AFD) 20 March 2012

If you wish to add to the list of IFIs above, request to the Commissioner General of Taxation in writing. Please refer to Tax Ruling TR-2012/B2 for further details.

MIRA Approved Bodies, Associations and Public Institutions

Subject to Section 10(f) of Business Profit Tax Act, a donation made by any Person to a body, association or public institution which is approved by the MIRA and established for the promotion of Islam, relief of the poor, medical relief or education or any other object of similar general public utility shall be deductible in computing that Person’s taxable profits for the tax year in which the donation is made.

In Addition, pursuant to section 15 (3) of Business Profit Tax Act, provisions of the Act, apart from Section 15, shall not apply to any body, association or public institution which is approved by the MIRA and established for the promotion of Islam, relief of the poor, medical relief or education or any other object of similar general public utility.

Auditors Registered with MIRA

Persons required to submit an Auditor’s Report together with their Business Profit Tax return, pursuant to section 14 of the BPT Regulation and Tax Ruling TR-2017/ B57, must submit an Auditor’s Report signed by an independent auditor registered with MIRA at the time submission of the return.

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International Accounting Standards Acceptable to the MIRA

These are the international accounting standards acceptable to the MIRA for the purpose of Section 8(c) of the Business Profit Tax Regulation. In preparing your accounts, you may use either of the following accounting standards in a tax year if it was approved by the date of filing your BPT Return for that year.

International accounting standards acceptable to the MIRA are:

  Name Approved Date
1 International Financial Reporting Standard (IFRS) 18 August 2011
2 International Financial Reporting Standard for Small and Medium-sized Entities (IFRS for SMEs) 15 April 2012
3 Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) Standards 15 April 2012

If you wish to add to the list of accounting standards above, request to the Commissioner General of Taxation in writing. Please refer to Tax Ruling TR-2012/B4 for further details.