The Maldives tax regime is governed under the Tax Administration Act and specific tax related legislations. There are two basic taxes imposed: the Goods and Services Tax (GST) and the Income Tax imposed on individuals and on businesses.

GST is a tax charged on the value of goods and services supplied in the Maldives from 2nd October 2011 onwards under the Goods and Services Tax Act. GST is categorized into two sectors: Tourism Goods and Services Tax and Local Goods and Services Tax.

With the enactment of the 6th amendment to the GST Act, the GST rates for both the tourism sector and the general sector was increased to 16% and 8%, respectively effective from 1st January 2023 onwards.

Income Tax was introduced under the Income Tax Act that came into force on 17th December 2019. Taxation under the act commenced on 1st January 2020. Income Tax is imposed on both individuals and businesses with tax brackets up to 15% based on the income of the person. Residents of the Maldives are taxed on their worldwide income, whereas non-residents and temporary residents are taxed on the income derived from the Maldives only.

For Individuals, there are 5 tax brackets with only persons earning a taxable income in excess of MVR 720,000 within a given taxable period required to pay taxes.

For businesses, including companies and partnerships but not licensed banks, are required to pay taxes at the tax rate of 15% should the taxable income exceeds MVR 500,000 within a given taxable period. Banks have to pay tax at a rate of 25% of their total taxable income.

Tax related disputes are heard on the first-instance before the Tax Appeal Tribunal, a quasi-judicial body formed under the Tax Administration Act.