NWT is a collection mechanism through which any type of payment specified in Section 55 of the Income Tax Act made to a non-resident from a person carrying in business in the Maldives is taxed. The obligation to withhold and pay the tax to MIRA falls on the person conducting business in the Maldives (the payer) who makes the payment to the non-resident
| # | Income | Rate |
| 1 | Rent in relation to immovable property situated in the Maldives | 10% |
| 2 | Royalty | 10% |
| 3 | Interest (except interest received by a bank or non-banking financial institution approved by CG) | 10% |
| 4 | Dividends | 10% |
| 5 | Fees for technical services (FTS) | 10% |
| 6 | Commissions received in respect of services provided in the Maldives | 10% |
| 7 | Income received in respect of performances in the Maldives by public entertainers | 10% |
| 8 | Income received for carrying out research and development in the Maldives | 10% |
| 9 | Insurance premium | 10% |
| 10 | Income received by a contractor | 5% |
The date at which the payment is actually made to the non-resident or the date at which the payment becomes payable, whichever is the earlier.
Non-resident withholding Tax Return (MIRA 602).
15th of the month following the month in which the NWT was required to be withheld.
You are not required to file NWT return, unless you make a payment listed in the section 55 of the Income Tax Act to a non-resident in a particular month.
There could be circumstances where you wouldn’t have to withhold even if you are making a payment listed in section 55 of the Income Tax Act [For example: due to a relief available through a DTAA]. In such cases, you must file an NWT return.
No, NWT return must be submitted online via MIRAconnect
For periods ending before 31 October 2024:
• You are required to prepare withholding tax returns in MVR and pay withholding tax in MVR.
Starting from the periods ending on or after 31 October 2024:
• If your functional currency is MVR, you must prepare your withholding tax return in MVR and you have the option of paying withholding tax in either MVR or USD.
• If your functional currency is not MVR, you must prepare your withholding tax returns in USD and you must pay withholding tax in USD.
NWT must be deducted from the gross payment. If you make a payment without deducting NWT from an applicable payment, you must treat the amount of the payment as the net amount of the payment after deducting the NWT you were supposed to deduct.
Use below formula to calculate NWT to be included in the return.
𝐴×𝑡 /100−𝑡
Where 𝐴 = amount of payment, and 𝑡 = applicable NWT rate
On request, MIRA issues withholding tax certificates to the payer (the person who files) of the NWT return, and the obligation to make the certificate available to the non-resident is on the payer.
Payer (the person who files) can generate and download NWT certificate from MIRAconnect.
If the exact amount from which NWT must be deducted is not known, or the period to which payments relates is not known, the amount subject to NWT must be computed based on a provision made, if a provision is required to be made in accordance under the accounting standards adopted by the person. NWT computed based on the provision in this manner must be accounted for in the NWT return for month to which the provision relates.
If there is a shortfall in the amount of NWT, the amount must be deducted and accounted for in the month the exact amount becomes certain. Similarly, if it is found that NWT amount was additional, the additional amount can be claimed through the NWT return submitted for the month in which the amount becomes certain.
Even if there is a separately identifiable component for reimbursement of costs included in the payment made to a non-resident, NWT must be deducted from the full amount.
NWT must also be deducted from payments made in respect of a recovery by a third party of such payment for which NWT would have been required to be deducted had the payment been made directly to the supplier of the service.
You may amend NWT returns within 12 months from the due date for filing that return