Maldives, Republic of

Individual - Other taxes

Last reviewed - 10 September 2023

Social security contributions

In accordance with Section 12 of the Pension Act, it is obligatory upon the employer and the employees who have not attained the age of pension to participate in the Retirement Pension Scheme of the Maldives. The employment contract shall provide for deduction of pension contribution by the employees.

The participation in the Retirement Pension Scheme by a Maldivian employee employed in the Maldives is mandatory irrespective of his/her participation in other pension scheme in or outside Maldives. However, participation by a foreign employee is, at present, voluntary.

Every person who is considered a participant of the Retirement Pension Scheme of the Maldives shall pay a minimum of 7% of the employee’s pensionable wage, and the employer shall also pay a minimum of 7% of the pensionable wage to the scheme.

Capital gains taxes

There is no separate gain tax. Capital gain form the part of total income of an individual and is taxed at the rates of applicable to individuals (see the Income determination section).

Goods and services tax (GST)

The supply of goods and services in Maldives is subject to a tax (GST) at the rate of 8% (with effect from 1 January 2023) on the value of goods and services. The supply of tourism goods and services is subject to 16% tax (with effect from 1 January 2023) on the value of goods and services.

The recipient of goods and services supplied by a registered person is eligible for input tax credit in respect of the GST paid on the purchase of goods and service. The input tax can be adjusted with the output tax liability, and the net amount will be payable as GST to the Maldives Inland Revenue Authority (MIRA).