Income Tax is levied under the Income Tax Act (Law Number 25/2019). The act was published in the Government Gazette on 17 December 2019 and taxation under the act commenced on 1 January 2020. However, remuneration came within the purview of income effective 1 April 2020. The tax regimes imposed under the Business Profit Tax Act and Bank Profit Tax Act were repealed with the commencement of Income Tax.
Residents of the Maldives are taxed on their worldwide income, whereas non-residents and temporary residents are taxed on the income derived from the Maldives only.
Banks refer to commercial banks licensed under the Maldives Banking Act (Law Number 24/2010) whether or not the bank is a resident of the Maldives.
Banks are treated as a separate taxable person under the Income Tax Act.
Banks have to pay tax at a rate of 25% of their total taxable income.