Non-resident Withholding Tax (NWT)

This is a mechanism through which non-residents deriving any of the incomes specified in the section 55 of the Income Tax Act from the Maldives are taxed. The obligation to withhold and pay the tax to MIRA is on the person carrying on business in the Maldives [the payer] who makes the payment to the non-resident.

NWT Rates

The following table gives types of income subject to NWT and the applicable rates

# 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%

Non-resident withholding tax is a final tax

If the income derived by a non-resident from the Maldives suffers non-resident withholding tax and the income is not a part of the income of the person’s permanent establishment in the Maldives, or if the choice of submitting an income tax return is not open to the non-resident under the ITA, the amount of non-resident withholding tax paid on that income will be the person’s final tax.

The following persons can choose to submit an income tax return even if they do not have a permanent establishment in the Maldives.

  1. Persons who derive income from the rent of immovable property situated in the Maldives;
  2. Public entertainers who derive income from performing in the Maldives;
  3. Persons who derive income from carrying out research and development in the Maldives.

Scenarios where NWT is not required to be deducted

  • State offices are not required to deduct NWT. However, any income received by a non-resident from a service rendered under a contract to a State office is considered an income derived from the Maldives comes within the purview of the ITA.
  • NWT is not required to be deducted from the payments mandated under the National Social Health Insurance Act to carry out the social protection schemes and programs.
  • NWT is also not required to be deducted from income made exempt under Section 12 of the ITA.

Non-resident withholding tax return and payment

NWT Return (MIRA 602) must be filed, and the corresponding payment must be made, by the 15th of the month following the month in which the payment subject to NWT was made to the non-resident. You are not required to submit any additional documents when filing the NWT return. However, you must keep all records. Even if an income which have been made exempt from non-resident withholding tax or deduction of non-resident withholding tax under a treaty or agreement entered into under Section 12(h) of the ITA, an NWT return must be filed. However, in such cases there would be no corresponding NWT payment. NWT returns can only be filed online using MIRAconnect. NWT payments can only be made online using MIRAconnect or MRTGS service provided by the banks operating in the Maldives. NWT Return is prepared, and NWT payment is made in MVR.

To file the return or make payment please proceed to your MIRAconnect account.

Non-resident withholding tax certificate

Persons filing the NWT return can obtain withholding tax certificate from their MIRAconnect portal.

Non-residents could request the payer to provide withholding tax certificate. The payer must provide withholding tax certificate before 30th April of the tax year immediately following the tax year to which the certificate relates.

Where the payer refuses to provide a withholding tax certificate, MIRA will provide the certificate with a request from the non-resident along with the proof of the earlier request to the payer. Non-residents could email such request along with the supporting documents to [email protected].

©   Maldives Inland Revenue Authority