Maldives, Republic of

Overview

Last reviewed - 03 August 2020

The Maldives, officially the Republic of Maldives, is a small island nation in South Asia, situated in the Arabian Sea of the Indian Ocean. The Maldives consists of 1,192 coral islands grouped in 26 atolls that stretch along a length of 871 kilometres north-south in direction, spread over roughly 90,000 square kilometres, of which only 298 square kilometres is dry land, making it one of the most geographically dispersed sovereign states as well as the smallest Asian country by land area and population.

Maldives is a presidential republic with extensive influence of the president as head of state and head of government. The President of Maldives heads the executive branch and appoints the cabinet, which is approved by the People's Majlis (Parliament). Islam is the official religion of the Maldives and open practice of any other religion is forbidden.

The local population, which is close to 350,000, is spread out across 188 islands, but most of the population is concentrated in the capital city of Malé, which is not only the political capital but also the centre of commerce in the country. The population is homogenous, speaking one language and practising one religion. In addition to the local language, English is widely spoken.

The Maldivian rufiyaa (MVR) is the main unit of currency used in Maldives. The most common foreign currency used within the country is United States dollar (USD).

The Maldivian legal system is a common law system with the courts having a wide leeway to interpret and apply the law. Maldivian law is a complex admixture of Shariah and English common law. However, trade-related legislation is influenced mostly by similar statutes and common law principles from Britain and other western jurisdictions.

The Maldives is a founding member of the South Asian Association for Regional Cooperation (SAARC). It is also a member of the United Nations (UN), the Commonwealth of Nations, the Organisation of Islamic Cooperation, and the Non-Aligned Movement. The World Bank classifies the Maldives as an upper-middle income economy. Fishing has historically been the dominant economic activity, followed by the rapidly growing tourism industry. Tourism accounts for 28% of the gross domestic product (GDP) and more than 60% of the Maldives' foreign exchange receipts. Over 90% of government tax revenue comes from import duties and tourism-related taxes. The Maldives rate ‘high’ on the Human Development Index, with per-capita income significantly higher than other SAARC nations.

The Maldives is party to a limited multilateral agreement between the members of the SAARC for the avoidance of double taxation and mutual assistance on tax matters. Maldives has signed a double tax avoidance agreement with United Arab Emirates and an agreement for avoidance of double taxation of income derived from international air transport with India. For the purposes of taxation in the aviation industry, certain reciprocal arrangements are in place with various countries.

PricewaterhouseCoopers (PwC) office in Male’ operates as a separately incorporated entity in the Republic of Maldives, with common ownership and direct administrative and practice support from PwC Sri Lanka. PwC Maldives provides audit, other assurance, and tax services to over 124 clients (including several listed entities) in the Republic of Maldives. The tax services provided by PwC Maldives include direct, indirect, and personal tax compliance services, tax due diligence, and other tax advisory services.

Quick rates and dates

Corporate income tax (CIT) rates
Headline CIT rate (%)

15

Corporate income tax (CIT) due dates
CIT return due date

30 June of the immediately following tax year.

CIT final payment due date

30 June of the immediately following tax year.

CIT estimated payment due dates

First interim payment: 31 July of the tax year;

Second interim payment: 31 January of the immediately following tax year;

Final payment: 30 June of the immediately following tax year.

Personal income tax (PIT) rates
Headline PIT rate (%)

15

Personal income tax (PIT) due dates
PIT return due date

30 June of the immediately following tax year.

PIT final payment due date

30 June of the immediately following tax year.

PIT estimated payment due dates

First interim payment: 31 July of the tax year;

Second interim payment: 31 January of the immediately following tax year;

Final payment: 30 June of the immediately following tax year.

Value-added tax (VAT) rates
Standard VAT rate (%)

Goods and services tax (GST): 6

Withholding tax (WHT) rates
WHT rates (%) (Div/Int/Roy)

Resident: NA;

Non-resident: 10 / 10 / 10

Capital gains tax (CGT) rates
Corporate capital gains tax rate (%)

Capital gains are subject to the normal income tax rate.

Individual capital gains tax rate (%)

Capital gains are subject to the normal income tax rate.

Net wealth/worth tax rates
Headline net wealth/worth tax rate (%)

NA

Inheritance and gift tax rates
Inheritance tax rate (%)

NA

Gift tax rate (%)

NA

NA stands for Not Applicable (i.e. the territory does not have the indicated tax or requirement)

NP stands for Not Provided (i.e. the information is not currently provided in this chart)

All information in this chart is up to date as of the 'Last reviewed' date on the corresponding territory Overview page. This chart has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this chart without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this chart, and, to the extent permitted by law, PwC does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this chart or for any decision based on it.