How to compute employee withholding tax?

Every month you are required to compute employee withholding tax on the gross amount of remuneration subject to withholding tax.  Remuneration subject to withholding tax is the amount of remuneration remaining after the deduction of the amount contributed to the Maldives Retirement Pension Scheme by the employee.

In computing the total remuneration, you must include salaries, wages, allowances and benefits whether or not paid in cash. You must value and include in the remuneration all non-cash benefits not exempt from tax.

Employee Withholding Tax (EWT) rates and brackets

Remuneration subject to withholding tax [Tax brackets] (per month) Tax rate
Not exceeding MVR 60,000 0%
More than MVR 60,000 but not exceeding MVR 100,000 5.5%
More than MVR 100,000 but not exceeding MVR 150,000 8%
More than MVR 150,000 but not exceeding MVR 200,000 12%
More than MVR 200,000 15%

For further details on valuing non-cash benefits please refer to the following guide.

©   Maldives Inland Revenue Authority