The amendments and regulations on the newly implemented Income Tax have been gazetted by Maldives government.
The gazetted regulations include amendments on the regulations gazetted on 31 December 2019, with inclusion of provisions detailing the income tax system's administration.
It also includes the government's course of action in the implementation and execution of the new taxation system.
Maldives Inland Revenue Authority (MIRA) confirms the regulations were compiled post academic feedback and public opinion as well as discussions from various stakeholders and experts of the field.
The Income Tax draft prior to implementation was open for public discourse on two separate occasions.
Additionally the Maldives taxation authority officials met with 27 stakeholders to inquire and include their opinion and recommendations prior to the draft proceeded to parliament for approval.
MIRA has conducted several awareness programs to various focus groups, which included 70 distinct information sessions with knowledge provided to approximately 741 individuals.
Though the amendments on regulations were gazetted quite recently, the Income Tax Act of Maldives was implemented on 01 February 2020.
As per the Income Tax, individuals are levied with the said taxation on their income sources exclusive of their basic salaries; meaning inclusive of other or various income streams.
Individuals who earn between MVR60,000 to MVR100,000 are subjected to a 5.5% of the Income Tax while individuals who earn between MVR100,000 and MVR150,000 are levied an 8% of Income Tax.
Moreover, Maldives Parliament made the decision to omit taxation on dividends by local corporations.
