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Taxes in the Maldives

Even you are obliged

According to the Maldives Tourism Act (Act No. 2/99) you are required to pay Tourism Tax. For each night and bed you will be charged 8 USD. The establishment which rents the bed (room) to you is obliged to collect this tax from you and forward it to the MIRA (Maldives Inland Revenue Authority).
You can find the Maldives Tourism Act here.

There is also an added tax of 6% on all purchases you make during your stay in the Maldives. This rate is set to increase in the future.

Business Taxes

An obolus for the administration

The information below was collected in 2013 and details the taxes and contributions for a medium sized company during the period of one year.

Tax or mandatory contribution Payments (number) Notes on Payments Time (hours) Statutory tax rate Tax base Total tax rate (% profit) Notes on TTR
Business Profit Tax 3 As of 31st July and 31st January for interim taxes. For annual return 6 months from end of the accounting year or 30th April of following tax year w.e.i later 96 15% On taxable profit in excess of MVR 500,000 14.38
Property transfer tax 1 On the date of registration 15% sale price 9.09
Pension fund contributions 12 15th of following month 88 7% gross salaries 7.90
Company annual fees 1 A fixed amount of Rufiyaa 10,000/- is to be paid by all public companies and Rufiyaa 2,000/- is to be paid by all private companies. fixed fee 0.05
Vehicle registration fees 1 MVR 1,800 annual fee, MVR 40 stamp for vehicles weight less than 2 tonns fixed fee 0.04
Employee pension fund contributions 0 withheld 7% gross salaries 0.00
Goods and Services Tax 12 28th of following month 229 8% Gross sales 0.00
Totals: 30.0 413.0 31.46

How to open a business in the Maldives

The procedures to go through

There are five steps you will need to go through if you plan on opening a business in the Republic of the Maldives. The whole process will take you about 9 work days. The cost of the steps below amounts to approximately USD 350. The company will need a minimum paid in captial of circa USD 130.

No. Procedure Time to Complete Associated Costs
1 Reserve a unique company name and obtain the standard forms for incorporation 1 day no charge
2 Pay registration fees 1 day fees included in procedure 3
3 Register at the Registrar of Companies and Apply for a Tax Identification Number (TIN) 5 days MVR 2,000 annual company fee + registration fee (see the comment) + MVR 500 stamp duty
4 Make a company seal 1 day MVR 250
5 Register the company seal with the Registrar of Companies 1 day no charge

Register Property

Your business will need space

Obtaining land in the Republic of the Maldives requires you to take care of six separate things. The whole process is estimated to last 57 working days.

No. Procedure Time to Complete Associated Costs
1 Check for encumbrances 7 days no cost
2 Apply to the Civil Court for the sale of the Land 30 days (simultaneous with Procedures 3 & 4) MRF 45,000- 55,000 + MRF 25 for court administrative fees
* 3 Purchase agreement is submitted to the Ministry of Housing 14 days (simultaneous with Procedures 2 & 4) 15% of the value of the property
* 4 Submit detailed outline chart to Civil Court 3 days (simultaneous with Procedures 2 & 3) no cost
5 Obtain the Civil Court Report or Judgment in relation to the sale of property 15 days Lawyer fees and court fees of MVR 20 + MVR 1 per page of the judgment report (included in procedure 2)
6 Apply for registration at the Municipality 5 days MRF 50/- for issuing a Registry certificate MRF 50/- for revenue stamp

* Takes place simultaneously with another procedure.

Obtaining construction permits

Getting something built

To erect structures within the Maldives there are a total of nine steps to go through. You will need approximately 140 working days to complete the procedures.

No. Procedure Time to Complete Associated Costs
1 Request and obtain permit to block the road/carry out site works 7 days no charge
2 Request approval from the Malé City Council, depending on the road width 3 days no charge
3 Obtain building permit 62 days MVR 3,902
4 Receive set out inspection from the Malé City Council 1 day no charge
5 Receive foundation inspection from the Malé City Council 1 day no charge
6 Apply for water and sewerage connection 1 day no charge
7 Receive inspection by Malé Water and Sewage Company 1 day no charge
8 Obtain water and sewage connection 34 days MVR 3,000
9 Obtain occupancy permit from Maldives Housing Urban Development Board 30 days no charge

Obtaining Electricity

Getting power to the island

Start this process early as it takes quite long. Over the course of 91 days there are 6 steps to take. The procedures will amount to about USD 22000.

No. Procedure Time to Complete Associated Costs
1 Get Load Calculation of the premise with LV panel drawings approved by Maldives Energy Authority 3 days MVR 0
2 Apply and receive electrical installation testing application signed by utility engineer 9 days MVR 100
3 Submit application to STELCO and await estimate 14 calendar days MVR 0
4 Customer purchases materials (LV panels) 28 calendar days MVR 90,000
5 Request and receive kWh meter testing from STELCO 7 calendar days MVR 50
6 STELCO conducts external connection works, meter installation and turns on electricity 30 calendar days MVR 250,000