Capital assets with acquisition costs not exceeding MVR 5,000 are fully deductible in the year of acquisition for tax purposes. Capital assets with costs exceeding MVR 5,000 are eligible for a capital allowance at the following rates:

Building	4%
Aircraft	7%
Wooden marine vessels	7%
Other marine vessels	5%
Furniture and fittings	10%
Motor vehicles	20%
Earthmoving vehicles	5%
Plant and equipment (excluding office equipment)	10%
Office equipment	20%
Computer software	33.33%
Crockery, cutlery, utensils, linen, loose tools	33.33%
Other assets	10%

Intangible assets are eligible for a capital allowance calculated on the basis of the useful life of the asset.

Effective 19 April 2021, borrowing costs are to be excluded in computing the cost of capital assets for the purpose of claiming capital allowances. However, the borrowing costs can be claimed as a deduction, subject to a cap (see Sec. 6.5. and Sec.13.2.). On 30 September 2023, the Maldives Inland Revenue Authority (MIRA) published a draft Guide to Limitation on Interest Deductions which includes guidance on the definition and scope of interest, the rules on interest deduction restriction and the treatment of borrowing costs that are capitalized along with several examples.

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