Worldwide Corporate Tax Guide 2022
1088
Maldives ey.com/GlobalTaxGuides
Malé EY G Shafag 2nd Floor Rahdhebai Magu Malé Maldives Business Tax Advisory
Krishna Rengaraj Sulakshan Ramanan
GMT +5 +960 332-0742, +960 332-6799 Fax: +960 332-0748 Email: eymv@lk.ey.com
+960 332-6799 Email: krishna.rengaraj@lk.ey.com +960 333-3841 Email: sulakshan.ramanan@lk.ey.com
A. At a glance Corporate Income Tax Rate (%) Capital Gains Tax Rate (%) Branch Tax Rate (%) Withholding Tax (%)
15 15 0 10*
* The 10% withholding tax is imposed on specified payments made to persons not resident in the Maldives. These payments include the following: • Rent with respect to immovable property located in the Maldives • Royalties • Interest (other than interest paid or payable to a bank or non-banking financial institution approved by the Maldives Inland Revenue Authority) • Dividends • Fees for technical services • Commissions paid for services provided in the Maldives • Payments for performances by public entertainers in the Maldives • Payments for carrying out research and development in the Maldives • Payments to contractors (payments made to nonresident contractors are subject to withholding tax at a rate of 5% on the full contract value) • Insurance premiums paid (insurance premiums do not include reinsurance premiums)
B. Taxes on corporate income and gains Although a tax specifically applicable to corporate profits does not currently apply, a tax of 15% is imposed on the taxable profits of any person other than an individual or a bank. Capital Gains Tax at a rate of 15% is imposed on the disposal of movable, immovable and intellectual or intangible property for which a capital allowance is not allowed. Also, resident and nonresident banks are subject to a tax of 25% on taxable profits.
C. Other significant taxes The following table summarizes other significant taxes. Nature of tax
Goods and Services Tax; the tax is passed on to the end consumer Tourism Goods and Services Tax (TGST); applies to goods and services supplied by tourist establishments
Rate (%)
6 12
M a l d i v e s 1089 Nature of tax
Rate (%)
Customs duties; imposed on imports; rates vary according to the type of import
Various
D. Foreign-exchange controls The Maldivian currency is the rufiyaa (MVR). The Maldives does not impose any strict foreign-exchange controls.