Maldives (MV)
The Maldives is the world's most geographically dispersed country — a chain of 26 coral atolls and 1,192 islands stretching 900km across the Indian Ocean, of which only about 185 are inhabited.
Tax & Payslip Guide
Understanding your taxes in Maldives — tax year Calendar year: 1 January – 31 December.
📊 Income Tax Brackets
| Income from | Income to | Rate | Notes |
|---|---|---|---|
| 0 | ∞ | 0% | The Maldives has NO personal income tax (PIT) for individuals — neither for Maldivian citizens nor for foreign workers. All employment income, regardless of amount, is completely exempt from income tax. This is one of the Maldives' most significant attractions for foreign professionals. Note: individuals may still be liable for income tax in their home country depending on their residency status and tax treaty provisions. |
🏛️ Social Contributions
Mandatory pension contribution under the Retirement Pension Act 2009. Applies to all employees working for Maldivian employers, including foreign workers. The combined 14% (7% employee + 7% employer) is deposited into your individual Maldives Retirement Pension Scheme (MRPS) account at MPAO. Foreign workers can withdraw their accumulated balance when they leave the Maldives permanently.
Employers are required to provide health insurance coverage for all employees. Either through a private insurer (group policy) or contribution to the National Health Protection Agency (NHPA) Madhana scheme. Madhana is the public health protection scheme for Maldivians — foreign workers are NOT covered by Madhana and must have private health insurance arranged by their employer or themselves.
🛒 VAT Rates
GST applies to goods and services supplied in the Maldives by registered businesses. TGST applies to tourist accommodations, dive schools, water sports, and tourism-related services. Businesses with taxable supplies exceeding MVR 1,000,000/year must register for GST with MIRA. Exports of goods and services are zero-rated.
🧾 Sample Payslip Decoder
🌍 Special Expat Tax Rules
No personal income tax applies to foreign workers in the Maldives. Your employment income is fully exempt. However, your home country may still tax you — consult a tax adviser about your residency status, potential exit tax obligations, and whether you need to file a return at home. The "Work From Maldives" scheme participants working for foreign employers: their non-Maldivian income is not subject to Maldivian tax, but home country obligations may apply. Resort workers receiving tips from guests: these are generally not reported or taxed in the Maldives.
📋 Double Tax Treaties
The Maldives has a limited network of double tax treaties (DTAs). As of 2026, treaties are in force with: UAE, Bangladesh, Bahrain, Pakistan, Sri Lanka, and several SAARC member countries. No comprehensive DTA with USA, UK, Germany, Australia, or Canada. This means foreign professionals may face taxation in both the Maldives (currently none on personal income) and their home country, depending on home country residency rules. Business Profit Tax (BPT) treaties may offer protection for corporate entities.
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