Non-resident airlines and shipping operators

There are some unique rules that are applicable to taxation of non-resident international airlines and shipping operators.

Taxation of “S.11(r) Income”

Income specified in the section 11(r) of the ITA  [“S.11(r) Income”] is taxed on gross basis at the rate of 2%. No deductions are allowed against S.11(r) Income.

S.11(r) Income is income derived by a non-resident shipping or aircraft operator in international transportation that has a permanent establishment in the Maldives, from carrying passengers or livestock or mail or parcels or merchandise or goods on an aircraft or a ship which departs from a place located in the Maldives.

The following income are excluded from taxation at the rate of 2%.

  • income derived from a passenger who transits in the Maldives in the course of a journey between two places outside of the Maldives;
  • income derived from a transshipment of livestock, mail, parcel, merchandise or goods.
©   Maldives Inland Revenue Authority