Maldives, Republic of
In accordance with Section 55(a) of the Income Tax Act, the following payments made by a person carrying on business in Maldives to a non-resident are subject to WHT:
- Rent in relation to immovable property situated in Maldives.
- Interests (except interest payable to a bank or financial institutions approved by the MIRA).
- Fees for technical services.
- Commissions paid in respect of services performed in Maldives.
- Payments in respect of performance by public entertainers in Maldives.
- Payments made for carrying out research and development in Maldives.
- Insurance premiums.
|Type of income received by the non-resident||WHT rate (%)|
|Income specified in Section 55(a) of the Income Tax Act||10|
|Payment to non-resident contractor - Section 55(b) of the Income Tax Act||5|
|Offshore indirect transfer of shares, an immovable property situated in the Maldives, or an intellectual or intangible property being used or registered in the Maldives.||10|
Where at the time of payment the residential status of the payee cannot be determined, the payee shall be considered as a non-resident and WHT should be deducted accordingly.
Interest accrued up to 31 December 2019 but paid in the year 2020 will not be subject to WHT.
For the purpose of WHT, head office and PE are considered as two different persons, and payment of the above amount by the PE to its head office will be subject to WHT.
Where a payer fails to deduct WHT from gross amount of the payment, the amount actually paid shall be deemed to have been made after deduction of WHT. The payer is required to gross up the payment and calculate the WHT on grossed up amount.
The person who is required to deduct WHT should file WHT returns with the MIRA on or before the 15th day of the following month and deposit the WHT deducted from the payment made to non-residents.
Where any person enters into any transaction (whether offshore or onshore) and the payment in respect of that transaction is made to a non-resident person (the 'payee'), the person who makes the payment (the 'withholding agent') must deduct 10% as WHT from the total amount of the payment. The withholding agent is responsible for payment of tax to the MIRA, irrespective of whether the withholding agent makes payment to the payee without deducting the specified amount of tax.