Dividends

The term ‘dividend’ includes any income derived from shares or otherwise in respect of a share of profit that does not constitute a return on debt.

Interest

The term “interest” includes:

Any payment (excluding the principal amount) under a debt security, loan, swap, or derivative arrangement, or a transaction in respect of which a payment that is economically equivalent to interest is payable; and
Any commitment, guarantee, or service fee paid in respect of a loan, swap, or derivative arrangement, including discounts, premiums, passive interest, and profit received in respect of any Islamic financial instrument.

Royalties

The term "royalty" includes:

Payments made in consideration for the use of, or the right to use any copyright of literary, artistic or scientific work; any patent, trademark, design or model, plan, secret formula or process; industrial, commercial or scientific equipment;
Payments made for information concerning industrial, commercial or scientific experience, and
Variable or fixed payments made in consideration for any right to work in the extraction of mineral or mineral oil deposits, and other natural resources.

Payments made in respect of the viewing of cinematographic films (whatever the format of the film) in the Maldives are also considered royalties. For withholding tax purposes, payments for the use of computer software are also considered royalties, subject to certain exceptions.

Capital Gains

Capital gains include income derived from the following:

Disposal of an immovable property situated in the Maldives;
Disposal of a share or any interest in a company, partnership, or trust, where at the time of disposal of such share or interest or at any time during the past 365 days, more than 50% of the value of the company, partnership or trust is directly or indirectly related to an immovable property situated in the Maldives;
Disposal of a share or any interest in a company, or partnership, or trust which is resident in the Maldives;
Disposal of an option as respects a property specified in the above-mentioned transactions, or from the disposal of a right to buy such property; and
Disposal of intellectual or intangible property used or registered in the Maldives or income derived under an agreement made in the Maldives for the disposal of such property.

Service Fees

The term “service fees” includes payment of fees for management, personal or technical services and any other commission or fee not constituting income from any employment.

Technical services include computer hardware, software installation and after-sales services, software maintenance support services, engineering consultancy and technician services, architectural, drafting and technical design services, marine survey services, etc.

Personal services include management consulting services, interior design services, market research and consultancy, training and instruction, etc.

Commissions and fees include marketing or advertising fees, travel wholesalers’ fees and commission, agency commissions, etc.

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