Maldives, Republic of

Individual - Significant developments

Last reviewed - 03 August 2020

The Income Tax Act (Law No: 25/2019) was introduced with effect from 1 January 2020.

With the implementation of Income Tax Act, individual taxpayers, who hitherto were taxed on their business income under the Business Profit Tax Act, are now subjected to tax on their personal income as well. The income tax on employment commenced from 1 April 2020. All employers in Maldives are required to withhold income tax on remuneration paid to employees at the prescribed rate.