The Maldives President, Ibrahim Mohamed Solih on Tuesday had ratified the newly approved Income Tax bill.
The bill was approved by Maldives Parliament on 04 December during their 75th sitting of the third term in 2019.
With the implementation of the Income Tax bill, the existing Business Profit Tax will be discontinued.
Meanwhile, to make the public aware of the transition from BPT to Income Tax some of the local firms have taken the initiative on pushing educational webinars.
According to the newly ratified Income Tax bill, the taxation is levied under five specific tax brackets for individuals and banks (the income portion based on tax based earnings).
These brackets are specified in detail under the Income Tax Act of Maldives.
The nominal tax brackets for individuals, on their earnings include;
- 0% tax on individuals with earnings below or at 720,000 per annum
- 5.5% tax on individuals with earnings between 720,000 and 1,200,000
- 8% tax on individuals with earnings between 1,200,000 and 1,800,000
- 12% tax on individuals with earnings between 1,800,000 and 2,400,000
- 15% tax on individuals with earnings at or above 2,400,000
