Maldives, Republic of

Individual - Deductions

Last reviewed - 10 September 2023

Employment expenses

No specific expense in relation to employment is allowed as deduction from employment income.

Where the person derives remuneration, expenditure that is not necessary for the performance of the person’s duties in the performance of one’s employment is not eligible for deduction.

Personal deductions

The following expenses are allowed from the personal income of an individual:

  • Payment of zakat al-mal by a person to the relevant government institution,
  • Payment made by a person to the Maldives Retirement Pension Scheme established under the Maldives Pension Act.

Charitable contributions

Donations made by a taxpayer to a State institution or a charitable organisation approved by the Commissioner General of Taxation are deductible. The maximum amount that may be deducted shall be 5% of the taxable income derived before the deduction of donation.

Life insurance premiums

A premium payable to an issuer under a life insurance policy is not eligible for deduction unless the premium is payable:

  • by a person who is carrying on a business
  • under a key person insurance policy that covers the life of a key employee in that business, and
  • the proceeds of such policy are payable to the person who carries on the business and constitute part or the whole of the total income of that person.

Mortgage interest expenses

Interest paid on a loan obtained from any person, except a bank or a non-banking financial institution approved by the Commissioner General, by an individual for the purpose of deriving the person’s total income shall be deductible, up to a maximum amount of 6% per annum, in the computation of that person’s taxable income.

Taxes paid

Income tax payable in the Maldives or outside the Maldives is not allowable as a deduction from taxable income.

Standard deductions

There is no standard deduction available from taxable income of an individual.

Personal allowances

There is no personal allowance or exemption available for deduction from taxable income.

Business deductions

For computation of business income of a person, an expense shall be deductible only if such expense was incurred by that person and was incurred wholly and exclusively for the purpose of production of income.

The following expenses are allowed as deductions from total income, subject to fulfilment of certain conditions and up to the maximum limit provided in the Income Tax Act and Income Tax Regulation:

  • Welfare expenses: Expenditure incurred for general welfare of the employees and for the benefit of the employees.
  • Interest: Interest on loan obtained from a person other than approved banks and financial institutions shall be deductible up to a maximum amount of 6% per annum. Overall interest deduction is subject to thin capitalisation rule (see the Group taxation section in the Corporate tax summary).
  • Bad debts: Bad debts should be included in the person’s total income, and reasonable steps must have taken to realise the debt.
  • Expenses incurred before commencement of business: Expenses incurred by a person before commencement of business shall be deemed as capital expenditure on the date of commencement of business.


The loss suffered in a tax year can be carried forward to and set off against the taxable income of future years, subject to conditions.

The loss for a year can be set off within five years from the end of the year in which the loss was incurred. The accumulated loss should be set off in the order in which it was incurred.