Tax is not the reason anyone starts a business, but getting it wrong can sink one. The Maldives introduced its goods and services tax over a decade ago and an income tax in 2020, and rates have changed several times since. This guide explains the main taxes small businesses and landlords face in 2026: general GST, tourism GST, income tax and withholding tax, plus practical tips for registration, returns and records.
This is a general guide, not tax advice. Rates, thresholds and rules change; check with the Maldives Inland Revenue Authority (MIRA) or a qualified tax adviser.
The main taxes at a glance
| Tax | Applies to | Rate (2026) |
|---|---|---|
| General GST | Most goods and services sold by registered businesses | 8% |
| Tourism GST (T-GST) | Tourism goods and services: accommodation, resort food and drink, spas, diving, excursions | 17% (since 1 July 2025) |
| Green tax | Tourists staying in tourist accommodation | Per guest per night; varies by type |
| Income tax | Business profits and individuals' income | Rates depend on the taxpayer and income band |
| Withholding tax | Certain payments to non-residents, such as rent, fees and interest | Rates set by law, commonly 10% for rent |
General GST
Who must register?
Businesses must register for GST when their taxable supplies exceed the registration threshold set in the GST Act and regulations, and some businesses may register voluntarily. Check the current threshold with MIRA. Once registered, you must charge GST on taxable sales, issue proper tax invoices and file returns.
How GST works
- Output tax: GST you charge customers on your sales.
- Input tax: GST you pay on business purchases.
- You pay MIRA the difference between output tax and allowable input tax for each period.
For example, a café sells MVR 200,000 of food and drink in a month (excluding GST) and charges 8% GST, which is MVR 16,000. It paid MVR 4,000 GST on its purchases. It pays MIRA MVR 12,000 for the period.
Invoices and pricing
Prices shown to consumers should make clear whether GST is included. Tax invoices must show the required details, including your GST registration number. MIRA has moved filing and payments online.
Tourism GST
Tourism GST applies to tourism goods and services such as resort and guesthouse accommodation, food and beverage in tourist establishments, spa treatments, diving and excursions. The rate rose from 16% to 17% on 1 July 2025. In 2026, an amendment to the GST Act extended tourism GST to inbound tourism services supplied by offshore operators and booking platforms without a fixed place of business in the Maldives, with an effective date of 1 October 2026 reported; one source reported that implementation might be postponed to April 2027. Tourism businesses should check the current position with MIRA. Read the guesthouse business plan.
Income tax
The Maldives' income tax law covers businesses and individuals. Businesses pay tax on their taxable profit (income minus allowable expenses), and individuals pay tax on employment and other income above thresholds, at progressive rates. Different rates apply to different types of taxpayers, such as banks. Keep:
- A record of all income, with invoices and bank statements.
- Receipts for every business expense.
- Records of assets bought, for depreciation.
- Payroll records and pension contributions.
File annual returns and any required interim payments on time to avoid penalties. Read personal income tax and wealth reporting.
Withholding tax
When a Maldivian business or person pays certain amounts to a non-resident, such as rent, fees or royalties, they may need to withhold tax and pay it to MIRA. Rent paid to non-resident landlords has commonly been subject to 10% withholding, with options for some to be taxed on net income instead. If you rent property from an overseas owner, check whether you must withhold. See can foreigners rent out property.
Many small businesses in the Maldives are really property businesses: families letting flats in their buildings. Points to consider:
- Income tax: rental income can be taxable; keep records of rent and expenses such as repairs, service charges and insurance.
- GST: residential rent has generally been treated differently from commercial supplies, while commercial lets and tourist accommodation may involve GST or tourism GST. Check how your lettings are classified.
- Tourist accommodation: letting to tourists brings tourism GST and green tax obligations and requires a tourism licence.
Registration and filing: step by step
- Register your business on the Business Portal; see how to register a company.
- Register with MIRA as a taxpayer and for GST or tourism GST if required.
- Set up an accounting system that separates GST collected and paid.
- Issue proper tax invoices and keep copies.
- File GST returns and pay on time, through MIRA's online system.
- File income tax returns each year.
- Keep records for the period required by law.
Common mistakes
- Not registering when turnover passes the threshold.
- Charging GST without being registered, or failing to show GST correctly on invoices.
- Claiming input tax without valid tax invoices.
- Mixing personal and business spending.
- Missing deadlines and running up penalties.
- Forgetting withholding tax on payments to non-residents.
Tips for small businesses
- Use simple accounting software or a spreadsheet from day one.
- Put GST collected into a separate account so you do not spend it.
- Diary every filing date.
- Get an accountant to review your first returns.
- Ask MIRA when you are unsure; it publishes guides and answers questions.
Record-keeping that makes tax easy
Most tax problems for small businesses come from poor records rather than complicated rules. A simple system:
- Sales: use a point-of-sale system or numbered invoices, and reconcile sales to bank deposits daily or weekly.
- Purchases: keep every supplier tax invoice, photographed or scanned, in folders by month.
- Bank: use a business account for all business transactions, and avoid paying business costs from personal accounts.
- Payroll: keep salary records, pension contributions and employment contracts.
- Assets: list equipment, furniture and vehicles with dates and costs.
- Monthly close: at the end of each month, total GST collected and paid and set money aside for the return.
With records like these, returns take hours instead of days, and any MIRA review is far less stressful.
Worked example: a small guesthouse
A guesthouse earns USD 10,000 in room revenue in a month, excluding taxes. It charges tourism GST of 17% on accommodation, which is USD 1,700, and green tax for each guest night, and pays both to MIRA after deducting any input tax it can claim on qualifying purchases. At the end of the year, it calculates income tax on its profit after expenses such as staff, utilities, maintenance and depreciation. Because guests pay these taxes on top of the room rate, guesthouses must show them clearly when quoting prices, especially on booking platforms.
When to get professional help
Many small businesses can handle GST returns themselves once set up. Get an accountant or tax adviser for your first returns, for year-end income tax, if you have foreign shareholders or non-resident payments, if you are in tourism with complex pricing, or if MIRA raises a query. The fee is usually far smaller than the cost of penalties.
Related guides
Starting a business? Read opening a café in Hulhumalé, SME loans in the Maldives and the Foreign Investment Act explained if you have foreign shareholders.
Tax rules in the Maldives have changed often in recent years, from GST rate rises to new rules for offshore tourism suppliers. Check MIRA's announcements at least every few months, or ask your accountant to alert you to changes that affect your business.
Frequently asked questions
What is the GST rate in the Maldives?
The general GST rate is 8%. Tourism GST (T-GST), which applies to tourism goods and services such as accommodation and resort services, is 17% since 1 July 2025.
Do I need to register for GST?
Businesses must register when their taxable supplies exceed the registration threshold set by MIRA, and tourism businesses register for tourism GST. Check the current threshold and rules with MIRA.
Is residential rent subject to GST?
Residential rent has generally been treated differently from commercial supplies. Check with MIRA how your specific lettings are treated, especially for commercial property and tourist accommodation.
Do landlords pay income tax on rent?
Rental income can be taxable under Maldivian income tax rules, and non-resident landlords may face withholding tax. Keep records of rent and expenses and check your position with MIRA.
