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A bill proposing changes to the Maldives’ Income Tax Act has been submitted to Parliament, including revised rules on interest deductions and an estimated MVR 496.3 million in additional state revenue.
Mariyam Adheela
MALE’, Maldives — A bill proposing significant amendments to the Income Tax Act has been submitted to the People’s Majlis, with the proposed changes aimed at revising the rules governing interest deductions when calculating taxable income.
The bill received its first reading at today’s parliamentary sitting. It was submitted on behalf of the government by Hassan Waheed, MP for Vilufushi constituency.
The proposed amendments seek to review the limits and conditions under which taxpayers can deduct interest expenses when calculating their taxable income.
The bill also proposes removing certain provisions from the existing Income Tax Act as part of the planned reforms.
Under the proposed changes, interest capacity would be calculated at 25 percent of a taxpayer’s tax-adjusted earnings for the relevant tax period.
The bill proposes that the amendments take effect from 1 January 2027.
According to the bill, the changes are expected to increase government revenue through income tax collections.
The government estimates that the proposed amendments could generate an additional MVR 496,300,302 in income tax revenue.
