Maldives Income Tax Collections Jump 28 Percent to USD 175 Million

The Maldives recorded a significant increase in state revenue during the first five months of the year, with income tax collections rising to USD 175.10 million. This represents a 28.5 percent surge compared to the USD 136.19 million collected during the same period last year, according to the latest statistics from the Maldives Inland Revenue Authority (MIRA). Corporate and non-individual entities remained the primary engine of this growth, contributing USD 84.31 million. This figure marks an 8.3 percent increase over the USD 77.82 million recorded in the previous year's corresponding window. One of the most dramatic shifts occurred within the financial sector. Income tax collected from banks skyrocketed to USD 31.78 million, a staggering 208 percent increase from the USD 10.31 million gathered during the same stretch last year. This sharp acceleration highlights a significant growth in taxable profits within the nation's banking industry. Revenue from non-residents and temporary residents also saw a substantial climb, rising 40 percent to USD 47.67 million, up from USD 33.92 million. Meanwhile, individual taxpayers contributed USD 13.88 million, reflecting an 11.8 percent increase over last year's USD 12.97 million. These collections are managed under the national Income Tax Act, which was officially implemented on January 1, 2020, with the taxation of wages and remuneration beginning shortly after on April 1, 2020. Under current laws, permanent residents are taxed on both domestic and international income, while non-residents and temporary residents are only required to pay tax on income generated within the Maldives. The steady rise across multiple sectors suggests a broadening tax base and increased economic activity within the archipelago as the government continues to refine its fiscal framework.