Capital Gains Withholding Tax (CGWT)
Income derived by a non-resident from the following transactions would be subject to CGWT.
- Disposal of an immovable property situated in the Maldives;
- Disposal of a share or any interest in a company, partnership or trust, where at the time of disposal of such share or interest, at any time during the past 365 (three hundred and sixty five) days, more than 50% (fifty percent) of the value of company, partnership or trust is directly or indirectly related to an immovable property situated in the Maldives;
- Disposal of a share or any interest in a company or partnership or trust which is resident in the Maldives;
- Disposal of an option as respects a property specified in above mentioned transactions, or from the disposal of a right to buy such property;
- Disposal of an intellectual or intangible property used or registered in the Maldives or income derived under an agreement made in the Maldives for the disposal of such property.
CGWT rate
The CGWT would be deducted at 10% on the gross payment.
CGWT return and payment
The withholding agent is required to file the capital gains withholding tax return. The CGWT return must include all the transactions made on the date covered by the return. In other words, all transactions of which CGWT payment deadline falls on the same day must be included in one return.
CGWT return is MIRA 608 form. CGWT return must be filed and payment must be made over the counter.
The withholding agent must file CGWT return and make the tax payment to MIRA by the earlier of the following;
- The date on which the withholding agent becomes the owner of any asset as a result of any of the specified transactions; or
- The date on which the payment pertaining to the transaction is paid to the payee.
If your functional currency is Rufiyaa (MVR), you must prepare your CGWT return in MVR and you have the option of paying CGWT in either MVR or United Stated Dollar (USD). If your functional currency is a currency other than MVR, you must prepare your CGWT returns in USD, and you must pay CGWT in USD.
