Maldives Personal Tax Guide: 0% Personal Income Tax 2026
The Maldives does not impose personal income tax (PIT) on individuals. There is zero tax on salaries, wages, bonuses, or any personal employment income. The only direct tax on individuals is the Business Profit Tax (BPT) at 15% for those engaged in business activities. Here is how personal taxation works in the Maldives in 2026.
Personal Income Tax in the Maldives is governed by the Maldives Inland Revenue Authority (MIRA) under the Income Tax Act. Unlike virtually every other country, the Maldives has chosen not to tax personal employment income. This makes it one of the most attractive jurisdictions in the world for individuals earning salary income. Residents are taxed on a territorial basis — only Maldives-source income is taxable. Since there is no PIT, employed individuals pay zero income tax regardless of their salary level. Check residency rules →
Real-world example: An employee earning MVR 100,000 per month (approximately USD 6,500) pays MVR 0 in personal income tax. A high-earning executive at MVR 500,000 per month also pays MVR 0. Compare this to regional peers: Sri Lanka taxes income above LKR 3.6M at rates up to 36%, India taxes above INR 15L at 30%, and the UAE has 0% PIT but has introduced a 9% corporate tax. The Maldives offers completely tax-free personal income for all employed individuals. Social contributions are separate →
Personal Income Tax Rate 2026
- 0% — All personal employment income: salaries, wages, bonuses, commissions, allowances, and benefits-in-kind
- 0% — Self-employment income (sole proprietors pay BPT on business profits instead)
- 0% — Investment income (dividends, interest — separate WHT rules apply to non-residents)
- 0% — Capital gains (no separate CGT in the Maldives)
There is no progressive tax system, no tax brackets, no tax-free threshold, and no tax filing for individuals with only employment income. The Maldives is one of the few countries worldwide with a true 0% personal income tax rate. There is no separate surtax, solidarity contribution, or local income tax.
Taxable Income Categories
Under the Maldives territorial tax system, only Maldives-source income is potentially taxable. However, since PIT is 0%, the distinction mainly matters for business income under BPT:
- Employment income: Salaries, wages, bonuses, allowances — taxed at 0%. No payroll withholding for income tax
- Business income: Self-employed individuals and sole proprietors are subject to BPT at 15% on business profits (not personal income tax)
- Rental income: Passive rental income is not subject to PIT. If rental activity constitutes a business, BPT may apply
- Investment income: Dividends and interest paid to residents are 0% WHT. Royalties to residents subject to 10% WHT
- Capital gains: 0% — no capital gains tax in the Maldives
Employment income is paid gross with no income tax deduction. Employees receive their full salary without any PIT withholding. The only deductions from salary are social contributions (MPF and health insurance). Filing requirements →
Business Profit Tax (BPT) for Individuals
While individuals pay 0% PIT on employment income, those engaged in business activities (sole proprietors, freelancers, independent contractors) are subject to Business Profit Tax (BPT) at 15% on taxable business profits. Key points:
- BPT rate: 15% on business profits after allowable deductions
- Registration: Individuals in business must register for BPT with MIRA
- Threshold: Businesses with annual turnover below MVR 1,000,000 may be exempt from BPT registration
- Deductions: Business expenses, capital allowances, and losses can be deducted from business income
If you are a freelancer or sole proprietor, you pay BPT at 15% on your net business profit, not PIT. This is different from most countries where self-employed individuals pay personal income tax. BPT detailed guide →
Social Security Contributions
While there is no income tax, employees and employers must contribute to the Maldives Pension Fund (MPF) and health insurance:
- MPF Employee: 3.5% of gross salary (capped at MVR 50,000/month)
- MPF Employer: 6.5% of gross salary (capped at MVR 50,000/month)
- Health Insurance Employee: 2% of gross salary
- Health Insurance Employer: 2% of gross salary
These are not taxes but social contributions that fund the pension system and healthcare. Detailed social contributions guide →
Who must file a tax return in the Maldives?
Individuals with only employment income (salary) do not need to file any tax return since there is no PIT. Individuals engaged in business activities must file a BPT return by March 31 following the tax year. Non-residents with Maldives-source business income must also file.
Are bonuses and overtime taxed?
No. Bonuses, commissions, overtime pay, allowances, and benefits-in-kind are all taxed at 0%. There is no distinction between regular salary and additional compensation — all personal employment income is tax-free in the Maldives.
Is there a wealth tax or net worth tax in the Maldives?
No. The Maldives does not impose a wealth tax, net worth tax, or any annual tax on personal assets. Property transfer taxes apply on transactions, and there is a small annual land rent, but no tax on total net worth. Wealth tax guide →