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Maldives, Republic of
Individual - Sample personal income tax calculation
Last reviewed - 10 September 2023Example 1
Mr. X is an employee at ABC Pvt Ltd. In 2020, Mr. X receives MVR 125,000 per month as his remuneration (after the deduction of his contribution to the Retirement Pension Scheme). Mr. X lives with his family in a 3-bedroom apartment provided by the company. The company pays MVR 30,000 per month as rent to the owner of the building.
The monthly remuneration received by Mr. X in this case is (125,000+30,000) MVR 155,000.
| Monthly remuneration subject to withholding tax (MVR) | Tax rate (%) | Income distributed among the brackets (MVR) | Withholding tax amount to be deducted (MVR) |
| 60,000 or less | 0 | 60,000 | |
| More than 60,000 but less than or equal to 100,000 | 5.5 | 40,000 | 2,200 |
| More than 100,000 but less than or equal to 150,000 | 8.0 | 50,000 | 4,000 |
| More than 150,000 but less than or equal to 200,000 | 12.0 | 5,000 | 600 |
| More than 200,000 | 15.0 | - | - |
| Total | 155,000 | 6,800 |
Example 2
In addition to the remuneration Mr. X received in example 1, he received MVR 12 million from a shop he started operating from 1 January 2020 as his total income. The amount of business expenses deductible under the law came to MVR 9 million. Thus, the taxable income Mr. X derived from the business is (12-9) MVR 3 million.
| Type of taxable income | Total income (MVR) |
| Remuneration (155,000 x 9) | 1,395,000 |
| Business income | 3,000,000 |
| Total | 4,395,000 |
Mr. X should calculate his tax payable as depicted in the below table.
| Monthly remuneration subject to withholding tax (MVR) | Tax rate (%) | Income distributed among the brackets (MVR) | Withholding tax amount to be deducted (MVR) |
| 60,000 or less | 0 | 720,000 | |
| More than 60,000 but less than or equal to 100,000 | 5.5 | 480,000 | 26,400 |
| More than 100,000 but less than or equal to 150,000 | 8.0 | 600,000 | 48,000 |
| More than 150,000 but less than or equal to 200,000 | 12.0 | 600,000 | 72,000 |
| More than 200,000 | 15.0 | 1,995,000 | 299,250 |
| Total | 4,395,000 | 445,650 |
Example 3
Mr. X from examples 1 and 2 sells his car for MVR 165,000 in the year 2020. He had bought the car for MVR 110,000, so his capital gains from this transaction is (165,000 - 110,000) MVR 55,000. In addition, Mr. X’s father gave him MVR 400,000 as a gift during the year.
So now Mr. X has to pay tax from the aggregate of the amounts he received as remuneration, business income, and capital gains in the year 2020. The amount of gift Mr. X received does not have to be included in his taxable income as it was gift from a relative (his father).
| Type of taxable income | Total income (MVR) |
| Remuneration (155,000 x 9) | 1,395,000 |
| Business income | 3,000,000 |
| Capital gains | 55,000 |
| Total | 4,450,000 |
It is assumed that the tax payable amount Mr. X had estimated for the year 2020 was MVR 250,000. Thus, Mr. X had paid MVR 125,000 (half of the total estimated amount) for each interim payment during that year.
Mr. X should calculate his tax payable from his total taxable income as depicted in the below table.
| Monthly remuneration subject to withholding tax (MVR) | Tax rate (%) | Income distributed among the brackets (MVR) | Withholding tax amount to be deducted (MVR) |
| 60,000 or less | 0 | 720,000 | |
| More than 60,000 but less than or equal to 100,000 | 5.5 | 480,000 | 26,400 |
| More than 100,000 but less than or equal to 150,000 | 8.0 | 600,000 | 48,000 |
| More than 150,000 but less than or equal to 200,000 | 12.0 | 600,000 | 72,000 |
| More than 200,000 | 15.0 | 2,050,000 | 307,500 |
| Total | 4,450,000 | 453,900 | |
| Amount deducted as withholding tax from Mr. X's salary (6,800 x 9) | (61,200) | ||
| First interim payment | (125,000) | ||
| Second interim payment | (125,000) | ||
| Final payment | 142,700 |
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