President Ibrahim Mohamed Solih has ratified the first amendment to the Maldives Income Tax Act, granting him the authority to waive taxes for people working in specific professions or companies involved in certain development projects.
The amendment, sponsored by Gadhdhoo MP Ahmed Zahir, gives the president the authority to exempt certain professions or businesses from paying income tax if they participate in specified development projects. It further states that the president must make the decision on the exception categories after conferring with his cabinet.
The changes also states that, when deciding on the exemption categories, the effect it would have on the State’s income, the benefits and drawbacks to the economy and society, as well as the purpose aimed at by granting exemption and how it could be achieved, must be considered.
Furthermore, the government will impose income tax on temporary residents of the Maldives who earn wages under the new legislation. It also explains how to compute employee withholding tax and the particular exemptions available when paying income tax, as well as other nuances that add to the elaboration of the Income Tax Act.
The first amendment to the Income Tax Act was published in the Government Gazette and goes into effect today.