The Income Tax Bill has been passed during the 74th session of the 19th People’s Majlis on 4 December 2019 by a Majority vote of 67 members and 3 members against.
The Bill was passed by the Members after incorporating a total of 25 amendments. These amendments mostly include certain administrative matters which relates to the effective implementation of the income tax regime. Though the Income Tax Act will commence from 1 January 2020, the tax regime on Employee Income to be introduced under the Act will commence from 1 April 2020 onwards.
The Income Tax Act introduces Personal Income Tax for the first time in the Maldives, integrates the existing Business Profit Tax and Bank Profit Tax Regime into the Act, and introduces a comprehensive Capital Gains Tax Regime. Upon ratification of the Bill into law, the Land Sales Tax and Remittance Tax will be abolished, effective from 1 January 2020.