Maldives Corporate Tax Guide: BPT 15% Standard 2026
The Maldives imposes Business Profit Tax (BPT) at a flat rate of 15% on the taxable profits of companies and individuals engaged in business. There is no separate corporate income tax — BPT applies to all business entities. Businesses with annual turnover below MVR 1,000,000 may be exempt from registration. Here is how business taxation works in the Maldives in 2026.
Business Profit Tax in the Maldives is governed by the Business Profit Tax Act and administered by the Maldives Inland Revenue Authority (MIRA). The BPT rate of 15% applies to all business profits derived from or attributable to the Maldives under the territorial tax system. The tax year is the calendar year. Companies must file annual BPT returns by June 30 of the following year. There is no separate corporate income tax — BPT covers all business entities including companies, partnerships, and sole proprietors. Filing and compliance guide →
Real-world example: A Malé-based trading company with annual turnover of MVR 20,000,000 and taxable profit of MVR 5,000,000 pays BPT at 15% = MVR 750,000. A small tourism business with MVR 800,000 turnover is below the MVR 1,000,000 threshold and pays 0% BPT. A sole proprietor consultant with MVR 3,000,000 in fees and MVR 1,000,000 in expenses pays 15% on MVR 2,000,000 = MVR 300,000. Compare this to Sri Lanka (14-28% CIT), India (25-30% CIT), and Singapore (17% CIT). IT sector opportunities →
Business Profit Tax Rate Structure
- 15% (standard): All business profits derived from the Maldives — applies to companies, partnerships, and sole proprietors
- 0% (small business exemption): Businesses with annual turnover below MVR 1,000,000 are exempt from BPT (but must register if turnover exceeds threshold)
- Tourism sector: Tourism businesses pay standard 15% BPT plus Tourism Goods and Services Tax (TGST) at 16%
BPT is a flat-rate tax with no progressive bands. There is no distinction between corporate and individual business profits — the same 15% rate applies to all. There is no separate branch profits tax or remittance tax.
Taxable Income and Deductions
Taxable business profit is calculated as gross income minus allowable deductions. Key rules include:
- Capital allowances: Depreciation on fixed assets — buildings, machinery, equipment, vehicles at prescribed rates
- Interest deductibility: Interest on business loans is generally deductible subject to thin capitalization rules
- Loss carryforward: Tax losses can be carried forward for up to 5 years
- Dividends: Dividends received from Maldives-resident companies are generally exempt from BPT (taxed at the distributing company level)
- Capital gains: Treated as ordinary business income and taxed at 15% BPT if derived from business assets
Transfer pricing rules apply for transactions with related parties. MIRA follows OECD guidelines for transfer pricing documentation. Cross-border taxation →
Withholding Taxes on Outbound Payments
The Maldives imposes withholding tax on certain payments to non-residents:
- Dividends: 0% WHT (no withholding on dividend payments to both residents and non-residents)
- Interest: 0% WHT (no withholding on interest payments to both residents and non-residents)
- Royalties: 10% WHT (applies to both residents and non-residents, may be reduced under DTT)
The 0% WHT on dividends and interest makes the Maldives a highly attractive jurisdiction for holding companies and financing structures. Investment income guide →
Tax Incentives and Exemptions
The Maldives offers limited but valuable incentives:
- Tourism sector: Special economic zones and resort development incentives may include BPT holidays for qualifying projects
- Foreign investment: Large-scale foreign investments may qualify for negotiated tax incentives under the Foreign Investment Act
- Small business exemption: Annual turnover below MVR 1,000,000 — full BPT exemption
Incentives typically require approval from the Ministry of Economic Development and MIRA. The Maldives has no separate IT sector tax incentives but the 0% PIT and flat 15% BPT are already competitive. IT sector guide →
Who needs to register for BPT in the Maldives?
All entities (companies, partnerships, sole proprietors) engaged in business in the Maldives must register for BPT with MIRA if annual turnover exceeds MVR 1,000,000. Registration is required before starting business operations. Non-resident companies with a permanent establishment in the Maldives are also subject to BPT on Maldives-source profits.
What is the filing deadline for BPT?
Annual BPT returns must be filed by June 30 of the following year. Tax is paid in quarterly installments based on estimated current-year profits, with a final settlement upon filing. Late filing penalties apply.
Are there any regional or municipal taxes?
No. The Maldives has a unitary tax system with no regional or municipal business taxes. The 15% BPT is the only direct tax on business profits. There is no trade tax, business license tax, or local surcharge on profits.