Maldives Corporate Income Tax

Corporate income tax rates and base

Companies and other persons carrying on business are taxed under the Income Tax Act (Law No. 25/2019). The standard rate is 15% on taxable profit above MVR 500,000, with a higher flat rate for banks.

• Corporate tax-free band — First MVR 500,000 of taxable income taxed at 0% MVR (Income Tax Act (Law No. 25/2019))
• Standard corporate income tax rate — 15% on taxable income exceeding MVR 500,000 % (Income Tax Act (Law No. 25/2019))
• Tax rate for commercial banks — 25% flat on the whole taxable income (no MVR 500,000 exemption) % (Income Tax Act (Law No. 25/2019))
• Tax base — Taxable profit (accounting profit adjusted for tax under the Act); resident companies taxed on worldwide income, non-residents on Maldives-source income (Income Tax Act (Law No. 25/2019))
• Non-resident company with permanent establishment — Taxed at 15% on profits attributable to the Maldives permanent establishment % (Income Tax Act (Law No. 25/2019))
• Non-resident withholding tax (general) — 10% on specified Maldives-source payments to non-residents % (Income Tax Act (Law No. 25/2019))
• Withholding tax on dividends to non-residents — 10% % (Income Tax Act (Law No. 25/2019))
• Withholding tax on interest to non-residents — 10% (interest paid to banks/approved financial institutions generally excluded) % (Income Tax Act (Law No. 25/2019))
• Withholding tax on royalties to non-residents — 10% % (Income Tax Act (Law No. 25/2019))
• Withholding tax on fees for technical services / management fees to non-residents — 10% % (Income Tax Act (Law No. 25/2019))
• Non-resident withholding tax remittance deadline — 15th day of the month following the month in which payment was made (Income Tax Act (Law No. 25/2019))
• Corporate filing & payment cycle — Two interim payments (31 July of the tax year; 31 January following) and a final return/payment by 30 June of the year following the tax year (Income Tax Act (Law No. 25/2019))