Withholding Tax

What is Withholding tax?

• Withholding Tax (WHT) is tax that you must deduct from payments that you
make to other businesses for particular services and the use of certain assets.

• You pay the tax that you deduct to the Maldives Inland Revenue Authority
(MIRA)

1. the payment must be made to a person that is a non-resident;

2. the payment must be for a purpose specified below

Types of payments that require WHT to be deducted
➢Rent of movable property, e.g. plant, machinery, equipment, etc.

➢ Royalties

➢ Payments for the use of plant, machinery, equipment or other property that you use in
your business

➢Payments for carrying out research and development in the Maldives

➢Payments for the use of computer software

➢Management fees
Types of payments that require WHT to be deducted

➢Fees for personal services performed in the Maldives

➢Fees for technical services performed in the Maldives

➢Other commissions or fees for services that are not income from
employment

➢Payments for performances by public entertainers

➢Rent and royalties paid to screen cinematographic films in the Maldives

When do you need to deduct WHT ?

You must deduct WHT at the time that you make the
payment to the non-resident.
Filing Returns - WHT
You have to file your WHT return and payment should be
made on or before 15th of following month