MV Income Tax

Maldives Income Tax -- Self-Employed Skill v0.1

CRITICAL — the Maldives DOES have a personal income tax. Some secondary aggregators (e.g. TaxAtlas) still state "the Maldives has no personal income tax." That is WRONG. The Maldives introduced a personal/individual income tax under the Income Tax Act, Law No. 25/2019 (ratified 17 December 2019). Income tax commenced 1 January 2020; taxation of remuneration (employment income) began 1 April 2020. The country has no historical tradition of income tax, which is why stale summaries claim none exists. Treat the Income Tax Act (Law No. 25/2019) and the Maldives Inland Revenue Authority (MIRA) as the governing authority.

Section 1 -- Quick Reference

Quick Reference

Field	Value
Country	Republic of Maldives
Tax	Individual / Personal Income Tax
Currency	Maldivian Rufiyaa (MVR). Approx. USD 1 ≈ MVR 15.4 (pegged band)
Tax year	Calendar year (1 January -- 31 December)
Primary legislation	Income Tax Act, Law No. 25/2019 (ratified 17 Dec 2019; income tax from 1 Jan 2020; remuneration from 1 Apr 2020)
Supporting legislation	Income Tax Regulation; Tax Administration Act & Tax Administration Regulation (penalties); GST Act, Law No. 10/2011 (7th Amendment, Law ratified 5 Nov 2024); Maldives Pension Act (MRPS)
Tax authority	Maldives Inland Revenue Authority (MIRA), mira.gov.mv
Pension authority	Maldives Pension Administration Office (MPAO), pension.gov.mv
Filing portal	MIRAconnect
Tax-free threshold	MVR 720,000 / year (= MVR 60,000 / month) — built into the bracket structure [Income Tax Act, Law No. 25/2019; RCO Lawyers guide]
Validated by	Pending — requires sign-off by a Maldives-qualified tax practitioner
Validation date	Pending
Skill version	0.1

Individual Income Tax — Annual Brackets (Tax Year 2025)

Individual Income Tax — Annual Brackets (Tax Year 2025) (Income Tax Act, Law No. 25/2019)

Annual taxable income (MVR)	Rate	Tax within band	Cumulative tax at top of band
0 – 720,000	0%	MVR 0	MVR 0
720,001 – 1,200,000	5.5%	5.5% × 480,000 = 26,400	MVR 26,400
1,200,001 – 1,800,000	8%	8% × 600,000 = 48,000	MVR 74,400
1,800,001 – 2,400,000	12%	12% × 600,000 = 72,000	MVR 146,400
Above 2,400,000	15%	—	—

• Resident vs non-resident tax base — Residents are taxed on worldwide income; non-residents / temporary residents are taxed on Maldives-source income only. (Income Tax Act, Law No. 25/2019)
• Tax-free threshold — MVR 720,000 / year (= MVR 60,000 / month). Built into the bracket structure — there is no separate personal allowance. (Income Tax Act, Law No. 25/2019; RCO Lawyers, Current Tax Rates in Maldives)
• Tax computation method — Tax is computed by allocating total taxable income across the bands and applying each marginal rate.

Bracket source: RCO Lawyers (rcolawyers.com/guides/2-current-tax-rates-in-maldives/). Authority page: MIRA (mira.gov.mv/Pages/View/ictindividuals). The MVR 720,000 / 5.5% / 8% / 12% / 15% structure is internally consistent with the monthly EWT bands below (annual = monthly × 12), which cross-confirms it.

[RESEARCH GAP — reviewer to confirm] The live MIRA page returns HTTP 403 to automated fetches. The annual bracket figures above come from a Maldives law-firm guide (RCO Lawyers), corroborated by the independently-sourced monthly EWT brackets, but were not read directly off the rendered MIRA page or the Income Tax Act PDF. A human should re-check against the Income Tax Act PDF (mira.gov.mv/Legislations/View/Incometaxact) before relying on the exact statutory bands.

Employee Withholding Tax (EWT) — Monthly Brackets

Employee Withholding Tax (EWT) — Monthly Brackets (MIRA, EWT rates and brackets, mira.gov.mv/Pages/View/ictewt; mira.gov.mv/Guides/View/wt_rates_and_brackets; launch announcement edition.mv/news/15888)

Monthly remuneration (MVR)	EWT rate
0 – 60,000	0% (exempt)
60,000 – 100,000	5.5%
100,000 – 150,000	8%
150,000 – 200,000	12%
200,000+	15%

• EWT withholding scope — The employer withholds only on the portion of monthly remuneration above MVR 60,000.
• EWT form & deadline — File EWT Return MIRA 601 online via MIRAconnect; due the 15th day of the following month, with payment by the same date. Monthly returns are required for every month once an employer has any EWT obligation, even nil months thereafter. (MIRA, mira.gov.mv/Pages/View/ewtfile; form mira.gov.mv/Forms/View/mira-601-Employee-Withholding-Tax-Return)

WARNING — do NOT use Rivermate's EWT table. Rivermate (rivermate.com/guides/maldives/taxes) publishes a different, conflicting EWT table (5%/10%/15%/20% on MVR 5,000–16,667 monthly bands). It does not match the official Income Tax Act structure and appears fabricated/outdated. Use the 5.5% / 8% / 12% / 15% set above.

Maldives Retirement Pension Scheme (MRPS) — Contributions

Maldives Retirement Pension Scheme (MRPS) — Contributions (Maldives Pension Act; MPAO, pension.gov.mv/en/mrps)

Party	Contribution
Employee	7% of pensionable wage
Employer	7% of pensionable wage (minimum)
Total	14%

Self-check: 7% (employee) + 7% (employer) = 14% total. ✓

• Employer election to pay full contribution — The employer may elect to pay the full 14% without deducting the employee share, but must pay at least 7%. (MPAO)
• Pensionable wage — The basic salary stated in the employment contract (definition effective 1 May 2010; set by the Pension Office Board). Allowances are generally excluded. (MPAO, old.pension.gov.mv/en/scheme/maldives-retirement-pension-scheme-en)

Self-employed contributors: annual contributions must not exceed the annual mandatory contribution of the highest-paid state employee (effective ceiling). [RESEARCH GAP — reviewer to confirm] No general statutory floor/ceiling for standard (non-self-employed) employees was found on the official MPAO page.

Conservative Defaults

Conservative Defaults

Ambiguity	Default
Unknown residency	STOP — do not pick a tax base without confirming resident vs non-resident/temporary
Unknown employment vs self-employment	Treat employment income via EWT; self-employment via the individual return
Unknown business-use % (vehicle, phone, home)	0% deduction
Unknown expense category	Not deductible
Unknown whether income is Maldives-source (non-resident)	Treat as Maldives-source (taxable) until confirmed
Unknown GST registration status	Assume not registered; flag if turnover near MVR 1,000,000
Unknown pensionable wage	Use the contractual basic salary only

Section 2 -- Required Inputs and Refusal Catalogue

Required Inputs

Minimum viable — bank statement for the full tax year in CSV, PDF, or pasted text, plus confirmation of (a) residency status (resident / non-resident / temporary resident) and (b) income type (employment via EWT vs self-employment / sole proprietor).

Recommended — all sales invoices, purchase invoices/receipts, EWT statements from employers (for employees), MRPS contribution records, prior-year income tax return or MIRA assessment, GST registration status.

Ideal — complete income and expenditure account, asset register, interim payment confirmations, employment income details and EWT already withheld.

Refusal if minimum is missing — SOFT WARN. No bank statement at all = hard stop. Bank statement without invoices = proceed with reviewer warning: "This Maldives income tax computation was produced from bank statement alone. The reviewer must verify that all deductions claimed are supported by valid documentation and that the wholly-and-exclusively-for-business test is met."

Refusal Catalogue

• R-MV-1 — Residency unknown — "Residency determines the tax base — residents are taxed on worldwide income, non-residents and temporary residents on Maldives-source income only. This skill cannot compute tax without confirmed residency status. Please confirm before proceeding."
• R-MV-2 — Companies, partnerships, banks — "This skill covers individuals (employees, sole proprietors, self-employed) only. Company/business income tax (15% above MVR 500,000; 25% for banks) and partnership returns are out of scope. Escalate to a Maldives-qualified tax practitioner."
• R-MV-3 — Non-resident withholding tax (NWT) — "Non-resident withholding tax on dividends, interest, royalties, and management/service fees (typically 5–10%) is a separate regime. Out of scope. Escalate to a qualified practitioner."
• R-MV-4 — Tourism sector specifics — "Tourism-sector taxation (TGST at 17% from 1 July 2025, green tax, tourism-specific rules) requires specialised analysis. For income tax it is in scope, but TGST/tourism levies are not. Escalate where tourism-specific levies are involved."
• R-MV-5 — Arrears / enforcement — "Client has outstanding tax arrears or is subject to MIRA enforcement. Late-payment penalties (0.05%/day, capped at the greater of twice the tax or MVR 250,000) are severe. Do not advise. Escalate to a qualified practitioner immediately."
• R-MV-6 — GST return requested — "This skill covers income tax and EWT only. For Maldives GST (GGST 8% / TGST 17%, MIRA 105/return), use a dedicated GST skill or escalate."

Section 3 -- Transaction Pattern Library

This is the deterministic pre-classifier. When a bank statement transaction matches a pattern below, apply the treatment directly. Do not second-guess. If none match, fall through to Tier 1 rules in Section 5.

How to read this table. Match by case-insensitive substring on the counterparty name or description as it appears in the bank statement. If multiple patterns match, use the most specific. Maldivian statements are usually in English (with some Dhivehi terms); amounts are in MVR unless flagged USD (common for tourism / TGST).

3.1 Income Patterns (Credits on Bank Statement)

3.1 Income Patterns (Credits on Bank Statement)

Pattern	Return Line	Treatment	Notes
Client name + TRANSFER, DEPOSIT, PAYMENT RECEIVED	Business income	Self-employment revenue	If GST-registered, extract net of GST (8% GGST)
FEES, PROFESSIONAL FEES, CONSULTANCY, SERVICE FEE	Business income	Self-employment revenue	Typical for self-employed
STRIPE PAYOUT, PAYPAL PAYOUT, WISE PAYOUT	Business income	Platform payout	Match to underlying invoices; net of platform commission
UPWORK, FIVERR, TOPTAL	Business income	Freelance platform	Net of platform commission
SALARY, REMUNERATION, EMPLOYER [name], MUSAARA	Employment income	Remuneration (subject to EWT, not the self-employed return)	EWT withheld by employer at source
RENT RECEIVED, KUYYEE	Rental income	Other income	Not self-employment income
INTEREST RECEIVED	Investment income	Other income	Interest income
DIVIDEND	Investment income	Other income	Dividend income (may be subject to NWT for non-residents)
MIRA REFUND, TAX REFUND	EXCLUDE	Not income	Tax refund from prior period
GOVERNMENT GRANT, SUBSIDY	EXCLUDE unless revenue grant	Check nature	Capital grants EXCLUDE; revenue grants = business income

3.2 Expense Patterns (Debits) — Fully Deductible (business expenses)

3.2 Expense Patterns (Debits) — Fully Deductible (business expenses)

Pattern	Category	Treatment	Notes
OFFICE RENT, COMMERCIAL RENT	Office rent	Deductible	Dedicated business premises
PROFESSIONAL INDEMNITY, PI INSURANCE	Professional insurance	Deductible
ACCOUNTANT, AUDITOR, BOOKKEEP, ACCA, CA FEES	Accountancy fees	Deductible
LAWYER, LEGAL, ADVOCATE (business)	Legal fees	Deductible	Must be business-related
OFFICE SUPPLIES, STATIONERY	Office supplies	Deductible
MARKETING, GOOGLE ADS, META ADS, FACEBOOK ADS	Marketing/advertising	Deductible
TRAINING, CPD, COURSE, SEMINAR, CONFERENCE	Training/CPD	Deductible	Must relate to current business
BANK FEE, BANK CHARGE, SERVICE CHARGE (business a/c)	Bank charges	Deductible	Business account only
STRIPE FEE, PAYPAL FEE, TRANSACTION FEE	Payment processing fees	Deductible
DOMAIN, HOSTING, CLOUDFLARE, AWS, DIGITALOCEAN	IT infrastructure	Deductible	Recurring = operating expense

3.3 Expense Patterns (Debits) — SaaS and Software

3.3 Expense Patterns (Debits) — SaaS and Software

Pattern	Category	Treatment	Notes
GOOGLE WORKSPACE, MICROSOFT 365, OFFICE 365	Software subscription	Deductible	Recurring subscription = operating expense
ADOBE, CANVA, FIGMA, NOTION, SLACK, ZOOM	Software subscription	Deductible
ANTHROPIC, OPENAI, GITHUB, ATLASSIAN, DROPBOX	Software subscription	Deductible
PERPETUAL SOFTWARE LICENCE (high value)	Capital item	Capitalise / capital allowance	[RESEARCH GAP — reviewer to confirm] capital-allowance rate; review Income Tax Regulation

3.4 Expense Patterns (Debits) — Utilities (may need apportionment)

3.4 Expense Patterns (Debits) — Utilities (may need apportionment)

Pattern	Category	Tier	Notes
STELCO, FENAKA, MWSC	Electricity / water	T2 if home office	100% if dedicated office; proportional if home; default 0% if mixed
DHIRAAGU, OOREDOO	Telecoms / broadband	T2	Business-use portion only; default 0% if mixed
MOBILE, DHIRAAGU MOBILE, OOREDOO MOBILE	Phone	T2	Business-use portion only

3.5 Expense Patterns (Debits) — Travel

3.5 Expense Patterns (Debits) — Travel

Pattern	Category	Treatment	Notes
MALDIVIAN, FLYME, EMIRATES, QATAR AIRWAYS	Flights	Deductible if business travel	Must be wholly business purpose
HOTEL, GUESTHOUSE, BOOKING.COM, AIRBNB	Accommodation	Deductible if business travel
FERRY, MTCC FERRY, SPEEDBOAT, TAXI	Local transport	Deductible if business purpose	Inter-island ferry/speedboat is common
FUEL, PETROL, DIESEL	Vehicle/vessel fuel	T2 — business % only	Requires usage log

3.6 Expense Patterns (Debits) — NOT Deductible

3.6 Expense Patterns (Debits) — NOT Deductible

Pattern	Category	Treatment	Notes
RESTAURANT, CAFE, ENTERTAINMENT, CLIENT MEAL	Entertainment	NOT deductible (flag)	[RESEARCH GAP — reviewer to confirm] entertainment treatment under Income Tax Regulation; default to non-deductible until confirmed
PERSONAL, GROCERIES, SUPERMARKET	Personal expenses	NOT deductible	Private living costs
FINE, PENALTY, MIRA FINE	Fines/penalties	NOT deductible	Public policy
INCOME TAX, MIRA TAX PAYMENT	Tax payments	NOT deductible	Income tax cannot reduce income
DRAWINGS, PERSONAL WITHDRAWAL, ATM (personal)	Drawings	NOT deductible	Not an expense

3.7 Expense Patterns (Debits) — Capital Items

3.7 Expense Patterns (Debits) — Capital Items

Pattern	Category	Treatment	Notes
LAPTOP, COMPUTER, MACBOOK, DESKTOP	Computer hardware	Capital allowance	[RESEARCH GAP — reviewer to confirm] exact capital-allowance rates under Income Tax Regulation
PRINTER, SCANNER, COPIER	Office equipment	Capital allowance	[RESEARCH GAP — reviewer to confirm] rate
FURNITURE, DESK, CHAIR	Furniture/fittings	Capital allowance	[RESEARCH GAP — reviewer to confirm] rate
VEHICLE, CAR, VESSEL, DHONI (business)	Motor vehicle / vessel	Capital allowance, business % only	[RESEARCH GAP — reviewer to confirm] rate

3.8 Exclusions (Neither Income nor Expense)

3.8 Exclusions (Neither Income nor Expense)

Pattern	Treatment	Notes
INTERNAL TRANSFER, OWN ACCOUNT, BETWEEN ACCOUNTS	EXCLUDE	Own-account transfer
LOAN REPAYMENT, PERSONAL LOAN	EXCLUDE	Loan principal movement
MRPS, PENSION CONTRIBUTION, MPAO	Pension contribution	Employee 7% / employer 7%; treat per Section 5.5 — not a general Box-2 expense
GST PAYMENT, MIRA GST	EXCLUDE	GST liability payment, not an income-tax expense
EWT PAYMENT, MIRA 601	Credit against tax (employees)	Tax withheld at source — credit, not an expense
INTERIM PAYMENT, MIRA INCOME TAX INTERIM	Credit against final liability	Not an expense — credit against the final return

3.9 Maldivian Banks — Statement Format Reference

3.9 Maldivian Banks — Statement Format Reference

Bank	Common Patterns	Notes
BML (Bank of Maldives)	TRANSFER, DD, SO, CARD, CHARGES	PDF/CSV; description contains counterparty + reference; date DD/MM/YYYY
MIB (Maldives Islamic Bank)	TRANSFER, PROFIT, CHARGE	Islamic-finance terminology (profit, not interest)
HBL Maldives, SBI Maldives	PAYMENT, TRF, FEE	Counterparty in description field
BML USD account	CARD PAYMENT, TRANSFER (USD)	Tourism / TGST receipts often in USD — convert at the applicable rate

Section 4 -- Worked Examples

All examples use Maldivian Rufiyaa (MVR) and the Tax Year 2025 brackets from Section 1. Amounts are recomputed end-to-end below.

Example 1 — Self-employed, annual taxable income MVR 1,500,000

Computation:

• Band 0–720,000: 0% → MVR 0
• Band 720,001–1,200,000: 5.5% × 480,000 = MVR 26,400
• Band 1,200,001–1,500,000: 8% × 300,000 = MVR 24,000
• Total income tax = 26,400 + 24,000 = MVR 50,400

Self-check: 0 + 26,400 + 24,000 = 50,400. ✓

Example 2 — Self-employed, annual taxable income MVR 900,000

Computation:

• Band 0–720,000: 0% → MVR 0
• Band 720,001–900,000: 5.5% × 180,000 = MVR 9,900
• Total income tax = MVR 9,900

Self-check: 5.5% × 180,000 = 9,900. ✓

Example 3 — Employee, monthly remuneration MVR 120,000 (EWT)

Input line: 28/02/2025 ; BML CREDIT ; EMPLOYER ATOLL CONSULTING PVT LTD ; SALARY FEB ; +116,200.00 ; MVR

Reasoning: Employment income. Employer applies EWT monthly bands (Section 1):

• First MVR 60,000: 0% → MVR 0
• 60,000–100,000 (MVR 40,000 at 5.5%): MVR 2,200
• 100,000–120,000 (MVR 20,000 at 8%): MVR 1,600
• Monthly EWT withheld = 2,200 + 1,600 = MVR 3,800

Net salary in this example also reflects MRPS employee 7% on pensionable wage; see Example 6. The credit of MVR 116,200 = MVR 120,000 gross − MVR 3,800 EWT (MRPS handled separately by the employer here).

Self-check: EWT 0 + 2,200 + 1,600 = 3,800; gross 120,000 − 3,800 = 116,200. ✓

Classification: Employment income (EWT regime). Employer files MIRA 601 by the 15th of the following month.

Example 4 — Consulting fee received (self-employed, GST-registered)

Input line: 15/03/2025 ; BML TRANSFER IN ; RESORT HOLDINGS PVT LTD ; INV-2025-007 ; +108,000.00 ; MVR

Reasoning: Self-employment revenue. Client is GST-registered and the MVR 108,000 includes 8% GGST. Net business income = 108,000 ÷ 1.08 = MVR 100,000. GST of MVR 8,000 is a liability to MIRA, excluded from income.

Self-check: 108,000 ÷ 1.08 = 100,000; 100,000 × 8% = 8,000; 100,000 + 8,000 = 108,000. ✓

Classification: Business income = MVR 100,000. GST MVR 8,000 excluded.

Example 5 — Software subscription (fully deductible)

Input line: 01/04/2025 ; BML CARD ; ADOBE SYSTEMS ; CREATIVE CLOUD APR ; -462.00 ; MVR

Reasoning: Monthly SaaS subscription, recurring, wholly for business. Fully deductible operating expense.

Classification: Deductible business expense = MVR 462.00.

Example 6 — MRPS pension contribution (basic salary MVR 80,000)

Input line: 05/03/2025 ; BML DD ; MPAO MRPS CONTRIBUTION ; FEB ; -5,600.00 ; MVR

Reasoning: MRPS employee contribution = 7% of pensionable wage (contractual basic salary). 7% × 80,000 = MVR 5,600. The employer separately contributes a matching 7% (MVR 5,600), so total to the scheme is MVR 11,200.

Self-check: 7% × 80,000 = 5,600 (employee); 7% × 80,000 = 5,600 (employer); total 11,200. ✓

Classification: Pension contribution (MRPS), not a general business expense — treat per Section 5.5.

Example 7 — Internal transfer (exclude)

Input line: 15/05/2025 ; BML TRANSFER ; OWN ACCOUNT — SAVINGS ; ; -20,000.00 ; MVR

Reasoning: Transfer between own accounts. Neither income nor expense.

Classification: EXCLUDE.

Section 5 -- Tier 1 Rules (When Data Is Clear)

5.1 The Wholly-and-Exclusively Test

• Wholly-and-exclusively test — An expense is deductible only if incurred wholly and exclusively in the production of business income. Mixed-use expenses must be apportioned on a reasonable, documented basis. [RESEARCH GAP — reviewer to confirm] the precise allowable-expense and deduction rules in the Income Tax Regulation were not fully captured; review directly. (Income Tax Act, Law No. 25/2019 (and Income Tax Regulation))

5.2 Residency and Source

• Resident individuals — Resident individuals: taxed on worldwide income. (Income Tax Act, Law No. 25/2019)
• Non-resident / temporary resident individuals — Non-resident / temporary resident individuals: taxed on Maldives-source income only.
• Residency confirmation requirement — Confirm residency before computing — see Refusal R-MV-1.

5.3 The Tax-Free Threshold

• Tax-free threshold — The first MVR 720,000 of annual taxable income (= MVR 60,000/month) is taxed at 0%. This is built into the bracket structure; there is no separate personal allowance. (Income Tax Act, Law No. 25/2019; RCO Lawyers guide)

5.4 Income Tax Registration Thresholds

• Registration threshold — single payer — Average monthly gross income over any 12-month period exceeds MVR 60,000 (i.e. > MVR 720,000/year). (MIRA FAQ, mira.gov.mv/Pages/View/FAQ_IncomeTax)
• Registration threshold — multiple payers — MVR 40,000/month where the person derives remuneration from more than one payer and has not been registered by any of them. (MIRA FAQ, mira.gov.mv/Pages/View/FAQ_IncomeTax)

5.5 MRPS Pension Contributions

• MRPS contribution rate — Employee 7% + employer 7% (minimum) of pensionable wage (contractual basic salary) = 14% total. (MPAO, Maldives Pension Act)
• Employer paying full contribution — The employer may pay the full 14% without deducting the employee share but must pay at least 7%.

[RESEARCH GAP — reviewer to confirm] whether/how the employee MRPS contribution is deductible against taxable income for income-tax purposes, and the self-employed contribution ceiling mechanics — review the Income Tax Regulation and Pension Act directly.

5.6 Employee Withholding Tax (EWT)

• EWT withholding basis — Employers withhold EWT on monthly remuneration above MVR 60,000 using the monthly bands (Section 1). (MIRA)
• MIRA 601 filing — File MIRA 601 via MIRAconnect by the 15th of the following month, with payment by the same date. Nil returns are required once an EWT obligation has arisen. (MIRA, mira.gov.mv/Pages/View/ewtfile)
• EWT as credit for employees — For employees, EWT already withheld is a credit against the individual's final income tax.

5.7 Self-Employed / Business Income — Filing & Payment

Self-Employed / Business Income — Filing & Payment schedule (RCO Lawyers, Maldives Income Tax; MIRA, mira.gov.mv/Pages/View/ictindividualshowtofile)

Step	Deadline
First interim payment	31 July of the tax year
Second interim payment	31 January of the following year
Final return + payment (annual reconciliation)	30 June of the following year

• Self-employed filing method — Self-employed individuals and sole proprietors file the individual income tax return (not EWT). Tax is paid over two interim payments plus a final filing. (RCO Lawyers, Maldives Income Tax; MIRA, mira.gov.mv/Pages/View/ictindividualshowtofile)

5.8 Non-Deductible Expenses

5.8 Non-Deductible Expenses

Expense	Reason
Personal living expenses	Not business-related
Fines and penalties	Public policy
Income tax itself	Tax on income
Drawings / personal withdrawals	Not an expense
Entertainment (client meals)	[RESEARCH GAP — reviewer to confirm] — default to non-deductible until the Income Tax Regulation is checked

5.9 GST Interaction (context)

5.9 GST Interaction (context)

Scenario	Income Tax Treatment
GST collected on sales (GST-registered)	NOT income — exclude from business income
Input GST recovered	NOT an expense — exclude
GST not recoverable (unregistered / blocked)	IS an expense — gross is the cost

• GST rates and thresholds — GGST 8%; TGST 17% (increased from 16% effective 1 July 2025, 7th Amendment to the GST Act, Law No. 10/2011, ratified 5 Nov 2024). GST registration threshold: taxable supplies > MVR 1,000,000 in the past/projected 12 months; tourism-sector businesses must register regardless of turnover. Returns + payment due by the 28th of the month following the taxable period (Form MIRA 105 to register; monthly if supply ≥ MVR 1,000,000, otherwise quarterly). TGST is paid in USD; GGST in MVR. (RCO Lawyers, Maldives Goods and Services Tax; MIRA circular on TGST rate; Crowe, TGST rate to increase from 1 July 2025)

Section 6 -- Tier 2 Catalogue (Reviewer Judgement Required)

6.1 Home Office Deduction

• Home office deduction rules — Apportion home costs (rent, electricity STELCO/FENAKA, water MWSC, internet) to the dedicated business-use proportion. Must be a genuinely dedicated workspace; dual-use rooms do not qualify. Conservative default: 0% deduction until reviewer confirms arrangement. [RESEARCH GAP — reviewer to confirm] the precise home-office rules under the Income Tax Regulation.

6.2 Vehicle / Vessel Business Use

• Vehicle/vessel business use rules — Only the business-use percentage of fuel, insurance, maintenance, and capital allowance is deductible. Vessels (dhoni/speedboat) are common business assets in the Maldives. Client must maintain a usage/mileage log. Conservative default: 0% business use until a log is provided.

6.3 Phone / Internet Mixed Use

• Phone/internet mixed use rules — Business-use portion only (Dhiraagu / Ooredoo). Conservative default: 0% deduction until business percentage confirmed.

6.4 Capital Allowances

• Capital allowances treatment — Capital assets are not expensed in full; they are written down via capital allowances. [RESEARCH GAP — reviewer to confirm] the capital-allowance rates and asset classes under the Income Tax Regulation were not captured. Flag every capital item for the reviewer and do not assert a rate.

6.5 Bad Debt Write-Off

• Bad debt write-off rules — Deductible only if income was previously declared, all reasonable recovery steps were taken, and the debt is genuinely irrecoverable. Flag for reviewer.

6.6 Foreign Tax Credit (residents)

• Foreign tax credit rules — Residents are taxed on worldwide income; relief for foreign tax may be available. [RESEARCH GAP — reviewer to confirm] foreign-tax-credit mechanics under the Income Tax Act/Regulation. Flag for reviewer.

Section 7 -- Excel Working Paper Template

MALDIVES INDIVIDUAL INCOME TAX -- WORKING PAPER
Tax Year: 2025                Currency: MVR
Client: ___________________________
Residency: Resident / Non-resident / Temporary resident
Income type: Self-employed / Employee (EWT) / Both

A. BUSINESS / SELF-EMPLOYMENT INCOME
  A1. Client payments (net of GST if registered)   ___________
  A2. Platform payouts (Stripe, PayPal, etc.)      ___________
  A3. Other business income                         ___________
  A4. TOTAL business income                         ___________

B. ALLOWABLE DEDUCTIONS
  B1. Office rent                                   ___________
  B2. Professional insurance                        ___________
  B3. Accountancy / legal fees                      ___________
  B4. Office supplies                               ___________
  B5. Software subscriptions                        ___________
  B6. Marketing / advertising                       ___________
  B7. Bank / payment processing fees                ___________
  B8. Training / CPD                                ___________
  B9. Travel (flights, ferry, accommodation)        ___________
  B10. Telecoms (business % of phone/internet)      ___________
  B11. Home office (% of utilities/rent)            ___________
  B12. Vehicle/vessel expenses (business %)         ___________
  B13. Capital allowances [RATE — reviewer]         ___________
  B14. Other allowable expenses                     ___________
  B15. TOTAL deductions                             ___________

C. NET BUSINESS PROFIT (A4 - B15)                   ___________

D. OTHER INCOME
  D1. Employment income (gross, before EWT)         ___________
  D2. Rental income                                 ___________
  D3. Investment income                             ___________
  D4. TOTAL other income                            ___________

E. TOTAL TAXABLE INCOME (C + D4)                    ___________
   (residents: worldwide; non-residents: MV-source)

F. INCOME TAX (apply annual bands — Section 1)
   0–720,000           @ 0%   = 0
   720,001–1,200,000   @ 5.5%                       ___________
   1,200,001–1,800,000 @ 8%                         ___________
   1,800,001–2,400,000 @ 12%                        ___________
   above 2,400,000     @ 15%                        ___________
  F1. TOTAL income tax                              ___________

G. CREDITS
  G1. EWT already withheld (employees)              ___________
  G2. Interim payments made                         ___________
  G3. Foreign tax credit [reviewer]                 ___________
  G4. TOTAL credits                                 ___________

H. TAX DUE / REFUND (F1 - G4)                        ___________

REVIEWER FLAGS:
  [ ] Residency confirmed (resident / non-resident)?
  [ ] Income tax registration threshold checked (MVR 60k/40k)?
  [ ] GST registration status confirmed (MVR 1,000,000)?
  [ ] Home office arrangement confirmed?
  [ ] Vehicle/vessel business % confirmed with log?
  [ ] Phone/internet business % confirmed?
  [ ] Capital allowance rates confirmed against Income Tax Regulation?
  [ ] MRPS contributions correct (7%/7% of basic salary)?
  [ ] Entertainment treatment confirmed?
  [ ] EWT (MIRA 601) filings up to date if employer?

Section 8 -- Bank Statement Reading Guide

Maldivian Bank Statement Formats

Maldivian Bank Statement Formats

Bank	Format	Key Fields	Notes
BML (Bank of Maldives)	PDF, CSV	Date, Description, Debit, Credit, Balance	Most common; description holds counterparty + reference; DD/MM/YYYY
MIB (Maldives Islamic Bank)	PDF	Date, Particulars, Withdrawal, Deposit	Islamic terms — "profit" not "interest"
HBL Maldives	PDF, CSV	Value Date, Description, Amount, Balance	Counterparty in description
SBI Maldives	PDF	Date, Narration, Debit, Credit
BML USD account	CSV	Date, Description, Amount (USD), Balance	Tourism/TGST receipts in USD — convert

Key Maldivian / Dhivehi Banking Terms

Key Maldivian / Dhivehi Banking Terms

Term	English	Classification Hint
MUSAARA	Salary / wage	Employment income (EWT)
KUYYEE	Rent	Rental income (in) or office rent (out)
FAISA / TRANSFER	Money / transfer	Check direction for income/expense
MRPS / MPAO	Pension scheme / pension office	Pension contribution (7%/7%)
EWT / MIRA 601	Employee Withholding Tax	Tax withheld at source — credit
GST / MIRA 105	Goods & Services Tax	GST liability — exclude from income tax
STELCO / FENAKA	Electricity utilities	Utility expense (apportion if home office)
DHIRAAGU / OOREDOO	Telecoms	Telecoms expense (business % only)

Section 9 -- Onboarding Fallback

If the client provides a bank statement but cannot answer onboarding questions immediately:

1. Classify all transactions using the pattern library (Section 3).
2. Mark all Tier 2 items as "PENDING — reviewer must confirm".
3. Apply conservative defaults (Section 1).
4. Generate the working paper (Section 7) with clear flags.
5. Present the following questions to the client:

ONBOARDING QUESTIONS -- MALDIVES INCOME TAX
1. Residency: resident in the Maldives, non-resident, or temporary resident?
2. Income type: self-employed / sole proprietor, employee (EWT), or both?
3. Are you registered for income tax with MIRA? (Threshold: avg > MVR 60,000/month,
   or MVR 40,000/month if income from more than one payer.)
4. Are you registered for GST? (Threshold: taxable supplies > MVR 1,000,000 / 12 months;
   tourism sector must register regardless.)
5. Home office: dedicated space? If yes, what % of floor area?
6. Vehicle/vessel: used for business? What % is business use? Do you keep a log?
7. Phone/internet: what % is business use?
8. MRPS: are pension contributions (7% employee / 7% employer) being made?
9. Employees only — what EWT has already been withheld by your employer(s)?
10. Have you made any interim income tax payments (31 July / 31 January)?
11. Any other income (employment, rental, dividends, interest)?
12. Any capital assets purchased during the year?

Section 10 -- Reference Material

Key Legislation / Authority References

Key Legislation / Authority References

Topic	Reference
Personal income tax (existence, brackets, residency)	Income Tax Act, Law No. 25/2019 (ratified 17 Dec 2019; income tax from 1 Jan 2020; remuneration from 1 Apr 2020). Brackets corroborated via RCO Lawyers, Current Tax Rates in Maldives
Tax-free threshold MVR 720,000/yr (MVR 60,000/mo)	Income Tax Act, Law No. 25/2019; RCO Lawyers guide
EWT monthly bands & MIRA 601 (due 15th of following month)	MIRA: mira.gov.mv/Pages/View/ictewt; mira.gov.mv/Pages/View/ewtfile; edition.mv/news/15888
Income tax registration thresholds (MVR 60,000 / MVR 40,000)	MIRA FAQ: mira.gov.mv/Pages/View/FAQ_IncomeTax
Self-employed interim/final deadlines (31 Jul / 31 Jan / 30 Jun)	RCO Lawyers, Maldives Income Tax; MIRA: mira.gov.mv/Pages/View/ictindividualshowtofile
MRPS contributions (7% / 7% / 14% of basic salary)	MPAO: pension.gov.mv/en/mrps; old.pension.gov.mv/en/scheme/maldives-retirement-pension-scheme-en; Maldives Pension Act
GST: GGST 8%; TGST 17% from 1 Jul 2025; threshold MVR 1,000,000; return due 28th	GST Act, Law No. 10/2011, 7th Amendment (ratified 5 Nov 2024); MIRA circular; RCO Lawyers; Crowe
Company/business income tax (15% > MVR 500,000; banks 25%); NWT 5–10%	RCO Lawyers, Current Tax Rates in Maldives; formix.live corporate guide
Penalties (late filing / late payment)	Tax Administration Regulation: mira.gov.mv/Legislations/View/Tax-Administration-Regulation-consolidated; apexlaw.co; MIRA fine calculators (ictfinecalculator, gstfinecalculator)

Penalties (MIRA)

Penalties (MIRA)

Event	Penalty
Late filing of return (with tax payable)	MVR 50 per day + 0.5% of the tax payable [Tax Administration Regulation; apexlaw.co]
Late filing (no tax liability)	MVR 50/day, capped at a maximum of MVR 125,000 [Tax Administration Regulation; apexlaw.co]
Late payment of tax	0.05% per day of the outstanding amount, capped at the greater of twice the outstanding tax or MVR 250,000 [Tax Administration Regulation; apexlaw.co]
Failure to register / failure to withhold	[RESEARCH GAP — reviewer to confirm] — specific amounts not found in a clean authoritative form

Minimum Wage (Maldivian nationals only; 2025)

Minimum Wage (Maldivian nationals only; 2025) (Minimum Wage Order, trade.gov.mv/wp-content/uploads/2023/05/minimum-wage-order-en-v01.pdf; remotepeople.com)

Employer category	Monthly minimum (MVR)
Small business	4,500
Medium business	7,000
Large business (100+ employees / MVR 20M+ revenue)	8,000
Tourism sector (any size)	7,000

Set by the Minimum Wage Order. Applies only to Maldivian nationals — foreign/expat workers are explicitly excluded. A national revision was underway during 2025; verify currency at point of use.

Test Suite

Input: Resident, annual taxable income MVR 1,500,000. Expected: 0 (first 720,000) + 5.5% × 480,000 (26,400) + 8% × 300,000 (24,000) = MVR 50,400 income tax.

Input: Resident, annual taxable income MVR 720,000. Expected: MVR 0 income tax (entirely within the 0% band).

Input: Resident, annual taxable income MVR 3,000,000. Expected: 26,400 + 48,000 + 72,000 + 15% × 600,000 (90,000) = MVR 236,400 income tax. Self-check: 26,400 + 48,000 + 72,000 + 90,000 = 236,400. ✓

Input: Resident, annual taxable income MVR 900,000. Expected: 5.5% × 180,000 = MVR 9,900 income tax.

Input: Employee, monthly remuneration MVR 120,000. Expected: 0 (first 60,000) + 5.5% × 40,000 (2,200) + 8% × 20,000 (1,600) = MVR 3,800 EWT withheld; employer files MIRA 601 by the 15th of the following month.

Input: Basic salary MVR 80,000/month. Expected: Employee 7% = MVR 5,600; employer 7% = MVR 5,600; total to scheme = MVR 11,200.

Input: GST-registered self-employed; receipt MVR 108,000 incl. 8% GGST. Expected: Business income = MVR 100,000; GST MVR 8,000 excluded from income.

Input: Resident, annual taxable income MVR 2,000,000. Expected: 26,400 + 48,000 + 12% × 200,000 (24,000) = MVR 98,400 income tax. Self-check: 26,400 + 48,000 + 24,000 = 98,400. ✓

PROHIBITIONS

• NEVER state that "the Maldives has no personal income tax" — it does, under the Income Tax Act (Law No. 25/2019)
• NEVER use the Rivermate EWT table (5%/10%/15%/20%) — use the official 5.5% / 8% / 12% / 15% bands
• NEVER compute tax without confirmed residency (resident = worldwide; non-resident = Maldives-source only)
• NEVER assert a capital-allowance rate — it is a RESEARCH GAP; flag for the reviewer
• NEVER include GST collected on sales in business income for GST-registered clients
• NEVER allow income tax itself, fines, penalties, or drawings as a deduction
• NEVER treat MRPS as a general business expense — it is the 7%/7% pension contribution
• NEVER present tax calculations as definitive — always label as estimated, pending reviewer sign-off
• NEVER rely on the annual brackets without the human re-check noted in Section 1 (MIRA page is bot-blocked)

Disclaimer

This skill and its outputs are provided for informational and computational purposes only and do not constitute tax, legal, or financial advice. Open Accountants and its contributors accept no liability for any errors, omissions, or outcomes arising from the use of this skill. All outputs must be reviewed and signed off by a qualified professional (such as a CPA, EA, tax attorney, or equivalent licensed practitioner in your jurisdiction) before filing or acting upon.

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