Maldives Cross-Border Tax Guide: WHT 0%/0%/10%, DTTs, No Exchange Controls 2026

Q: Can I repatriate profits from the Maldives tax-free?

Dividends to non-residents: 0% WHT. Interest to non-residents: 0% WHT. Royalties: 10% WHT. No branch remittance tax. No exchange controls.

Q: What is the procedure for claiming DTT benefits?

Provide the payer with a Treaty Relief Application, Certificate of Tax Residency, and beneficial ownership declaration. Reduced rates apply at source.

The Maldives cross-border tax framework features zero withholding tax on dividends and interest paid to non-residents, 10% WHT on royalties, a limited Double Taxation Treaty network (UAE, India, Sri Lanka), and no exchange controls. Here is how cross-border taxation works in 2026.

Cross-border taxation in the Maldives is governed by the Tax Administration Act and the Income Tax Act. The system is designed to facilitate international investment — there are no exchange controls, meaning funds can move freely in and out of the country. Withholding tax rates on outbound payments are zero for dividends and interest, making the Maldives a highly attractive jurisdiction for holding companies and financing structures. MIRA has a dedicated international tax unit for cross-border matters. Investment income tax →

Real-world example: A UAE company receives MVR 2,000,000 in dividends from its Maldives subsidiary. WHT: 0% = MVR 0. An Indian company lends MVR 5,000,000 to a Maldives company and receives MVR 400,000 in interest. WHT: 0% = MVR 0. A UK company licenses software to a Maldives company and receives MVR 300,000 in royalties: domestic WHT 10% = MVR 30,000. The Maldives has no DTT with the UK, so the full 10% rate applies. BPT overview →

Withholding Tax Rates

Dividends to non-residents: 0% WHT — no withholding on dividend payments
Interest to non-residents: 0% WHT — no withholding on interest payments
Royalties to non-residents: 10% WHT (may be reduced under DTT)
Dividends to residents: 0% WHT
Interest to residents: 0% WHT
Royalties to residents: 10% WHT

The 0% WHT on dividends and interest is a major advantage for cross-border investment. Royalties at 10% is moderate. The payer is responsible for withholding and remitting the tax to MIRA. Treaty relief requires the recipient to provide a Certificate of Tax Residency and beneficial ownership declaration.

Double Taxation Treaties

The Maldives has a limited but growing DTT network. Current treaty partners:

UAE — Comprehensive DTT covering dividends, interest, royalties, business profits, and capital gains
India — Comprehensive DTT covering all income types
Sri Lanka — Comprehensive DTT covering all income types

Treaties generally provide for reduced withholding tax rates on royalties and clarify taxing rights on business profits and employment income. The Maldives is actively working to expand its treaty network. Key provisions typically follow the OECD Model Convention.

No Exchange Controls

The Maldives has no exchange controls, meaning:

Free movement of capital: Funds can be freely transferred in and out of the Maldives without restrictions
No approval required: No central bank approval needed for cross-border transactions
Multiple currency accounts: Businesses and individuals can hold accounts in foreign currencies
Profit repatriation: No restrictions on repatriating profits, dividends, or capital
No withholding on repatriation: No branch remittance tax or additional withholding on profit repatriation

The absence of exchange controls, combined with 0% WHT on dividends and interest, makes the Maldives a highly favorable jurisdiction for international business and investment.

Transfer Pricing

The Maldives has transfer pricing rules that follow international best practices. Key requirements include:

Arm's length principle: Transactions between related parties must be conducted as if between independent entities
Documentation: Taxpayers must maintain transfer pricing documentation for related-party transactions
Methods: Acceptable methods include comparable uncontrolled price (CUP), cost plus, resale price, transactional net margin method (TNMM), and profit split
Penalties: Adjustments and penalties apply for non-compliance with arm's length principle

Permanent Establishment Risk

Non-resident companies may create a taxable presence (permanent establishment) in the Maldives through: a fixed place of business (office, branch, resort, construction site exceeding a certain period), a dependent agent with authority to conclude contracts, or provision of services through employees for more than 183 days in any 12-month period. A PE is subject to BPT at 15% on profits attributable to the PE.

Can I repatriate profits from the Maldives tax-free?

Dividends paid to non-resident shareholders: 0% WHT. Interest paid to non-residents: 0% WHT. Royalties: 10% WHT. There is no branch remittance tax on profits remitted by a PE to its foreign head office. Combined with no exchange controls, the Maldives offers full profit repatriation freedom.

What is the procedure for claiming DTT benefits?

The non-resident must provide the Maldivian payer with: a completed Treaty Relief Application form, a Certificate of Tax Residency from the home country tax authority, and a declaration of beneficial ownership. The payer then applies the treaty rate at source.