The Income Tax Bill has been ratified by the President today.

The Income Tax Bill has been ratified by the President today.

Taxation under the Income Tax Act will commence on 1st January 2020. With the commencement of the Act, Business Profit Tax, Withholding Tax and Bank Profit Tax will be collected under Income Tax Act. In addition to that, Employee Withholding Tax levied under Income Tax Act will commence on 1st April 2020, where the remunerations of employees will be subject to withholding tax if it exceeds MVR 60,000,  at the rates between 5.5%- 15% according to different brackets mentioned in the regulation.  Furthermore, interest and dividend paid to non-residents will be subject to Non-resident Withholding Tax; a Tax imposed on some of the payments made to a non-resident in the Maldives.

With the ratification of the Income Tax bill, Remittance Tax levied under Employment Act and Land Sales tax will be abolished starting from 1st January 2020.

In addition, the Business Profit Tax Regulation and Bank Profit Tax Regulation will be abolished under the Income Tax Act effective from 1st January 2020.

 

Related Documents:

https://www.mira.gov.mv/TaxLegislation/Income_tax_act_gazette-48-1170.pdf

 

19 Dec 19