Maldives, Republic of
Foreign tax relief
Where any person resident in the Maldives has paid tax in a foreign country or territory on any part of the person’s income that arises from a source outside Maldives and which is also chargeable to tax under the Income Tax Act in any accounting period, that person shall be entitled to deduct from the amount of tax imposed under the Income Tax Act an amount equal to the lesser of:
- The amount of foreign tax paid.
- Tax payable in the Maldives from the net amount of foreign-sourced income.
The Maldives has entered into a double tax avoidance agreement with United Arab Emirates.
The Maldives is party to a limited multilateral agreement between the members of the South Asian Association for Regional Cooperation (SAARC) for the avoidance of double taxation and mutual assistance on tax matters.