Maldives to enforce income tax starting 2020

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President Mr. Ibrahim Mohamed Solih confirmed plans of introducing a progressive income taxation system in the Maldives, during his presidential address.

Noting that the economic growth rate of the country had gained significant traction following the introduction of the tax system, the President highlighted that the growth and sustainability of our ‘Jazeera economy’ is tied to increasing public profit from net economic revenue.

“As a means to overhaul the tax system, the Government intends to submit to this esteemed Majlis during the course of this year, a bill on introducing a progressive income tax. Once the bill is passed the income tax regimen will be enforced next year. This will be another step towards a fully-functioning Jazeera economy,” President Solih said.

Tax revenue will be used for the provision of shelter, ensuring affordability of treatments for serious diseases, the establishment of clean water and sewerage systems in addition to providing aid to economically struggling families.

“National development in its true essence is measured by an increase in living standards. The Government aims to ensure that wages are sufficient for citizens to lead dignified lives. In this regard, the Government is presently engaged in discussions with relevant authorities to determine a minimum wage,” President Solih added.

While the government seeks to submit the bill on income tax to the parliament, the parliament will hold elections for the next session coming April.

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