Maldives, Republic of

For the purpose of income tax on corporates, taxpayers are classified under the following two categories:

• Resident in Maldives.
• Non-resident in Maldives.

Resident in Maldives

In case of a company:

• that is incorporated in Maldives
• that has its head office in Maldives, or
• the control or management of which is in the Maldives.

In case of a partnership:

• that is formed in Maldives or
• the control and management of which is in Maldives.

In the case of a trust:

• that is formed or settled in the Maldives
• a heritage trust of a deceased person who was resident in the Maldives, or
• that was operated in the Maldives at point in time during a tax year.

Non-resident in Maldives

A person who is not a resident in Maldives.

Permanent establishment (PE)

‘Permanent establishment’ means a fixed place of business through which the business of an enterprise is wholly or partly carried on. The term ‘permanent establishment’ includes especially:

• A place of management.
• A branch.
• An office.
• A factory.
• A workshop.
• A mine, an oil or gas well, a quarry, or any other place of extraction of natural resources, including vessels and ships used for the extraction of such resources.

The term ‘permanent establishment’ also encompasses:

• A building site, a construction, assembly, or installation project, or supervisory activities in connection therewith, but only if such site, project, or activities continue for more than six months.
• The furnishing of services, including consultancy services, by an enterprise through employees or other personnel engaged by the enterprise for such purpose, but only if activities of that nature continue within the Maldives for a period or periods aggregating more than 183 days in any 12-month period commencing or ending in the tax year concerned.