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Tax Year

The tax year is the calendar year in the Maldives.

Tax Return Filing

Taxpayers are required to file their tax returns by 30 June of the following year. As per the fourth amendment to the income tax regulations, non-residents having a permanent establishment in the Maldives are also required to file the income tax returns in the Maldives. Taxpayers are required to file interim returns along with advance tax payments by 31 July and 31 January every year. Taxpayers with annual turnover equal to or exceeding MVR 10 million are required to file their interim returns electronically.

If an entity’s functional currency is MVR, then the interim and income tax returns must be prepared in MVR. However, if an entity’s functional currency is not MVR then the interim and income tax returns must be prepared in USD beginning from the second interim return for the tax year 2024 i.e. interim return to be filed by 31 January 2025.

Effective 19 April 2021, taxpayers (other than banks) are exempted from filing income tax returns if the taxable income and gross income do not exceed MVR 500,000 and MVR 2 million, respectively, for the relevant tax year and the immediately preceding tax year.

Tax Payments

Advance tax payments (interim payments) are due by 31 July and 31 January on the basis of the preceding year’s tax assessment. The final tax payment is due by 30 June of the following year.

Taxpayers with annual turnover equal to or exceeding MVR 30 million are required to make advance tax payments electronically.

Interim payment amounts are required to be estimated as follows:

Each of the two interim payments shall be equal to one-half of the amount of tax payable for the accounting period ending in that tax year; or
Where the tax payable for a tax year is expected to be less than the tax payable for the previous tax year, the taxpayer may make a reasonable estimate of the amount of interim tax payable.

The total interim tax paid must be at least 80% of the final tax payable.

Beginning from the second interim return for the tax year 2024 i.e. interim return to be filed by 31 January 2025, an entity whose functional currency is MVR has the option to make its income tax and interim payments in either MVR or USD, even though the return is prepared in MVR. If the functional currency is not MVR, then the income tax must be paid in USD.

If the tax return is prepared in MVR but the entity wishes to pay the tax in USD then the exchange rate to be used for the conversion is MVR 15.42 per USD 1.

Tax Refunds

The tax authorities published a framework for a refund of tax amounts paid in excess, which is effective from 27 September 2021. Where the submission of a tax return or amending a tax return results in an overpayment of tax, such overpaid amount shall be refunded by MIRA either by setting it off against the amounts overdue and outstanding by the taxpayer to MIRA or where the above set-off does not apply or excess overpayment remains, such amount shall be refunded to the taxpayer.

The tax authorities may also perform a review or conduct an audit of the person who requests a refund (by submitting a refund form), with reference to either the risks involved or a threshold as determined by tax authorities, before issuing a refund in respect of an amount overpaid. In the following cases, the tax authorities may conduct an audit prior to the issuance of such refund:

If a person who is not a resident of the Maldives files an interim return or an income tax return under the Income Tax Act; and
If a person files a tax return in specific cases where the Commissioner General may require tax returns, such as when a person ceases to be resident in the Maldives, terminates a permanent establishment in the Maldives, and others.

Availability of E-Filing

E-filing is available on the tax authorities’ dedicated portal (https://www.mira.gov.mv/MIRAconnect).

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