As a general rule, if an expense is incurred wholly and exclusively in an accounting period to earn a business income, it can be deducted against the business income of that period.

Payment of zakat al-mal, pension payments to the Maldives Retirement Pension Scheme established under the Maldives Pension Act and donations made to State institutions or charitable organizations approved by the CG are deductible subject to the cap irrespective of the type of the income.

A person who derives rent from immovable property situated in the Maldives and prepares financial statements on cash basis can elect to claim a deduction equivalent to 20% of the total rental income as expenditure incurred in deriving the rental income.

©   Maldives Inland Revenue Authority