The Maldives government has decided to reduce the withholding tax levied on foreign contractors from 10% to 5%.
The withholding tax would be fixed at 5% of monthly revenue, according to revisions to the Income Tax Act agreed by parliament in April.
In response to the modifications to the withholding tax, Commissioner General of Taxation Fathuhulla Jameel stated that the adjustments would not affect the state’s tax revenue.
According to Fathuhulla, increasing the withholding tax to 5% would be helpful since it would offer additional funds for businesses to manage their monthly cash flow.
The monthly withholding tax was 10% prior to the changes to the tax laws. Aside from that, the revisions amended a number of other taxation regulations.
The bill submitted by Gadhdhoo MP Ahmed Zahir contained taxation on assets and funds obtained illegally or against the law, as well as finances and investments obtained from unknown or unproven sources.